What is the best way to handle large investment losses on my taxes?
I really screwed up and have over $50,000 in investment losses this year! Our gross income from salaries for this year will only be around $50,000. In addition, I lost $5000 in my Roth IRA. I just read that I can only deduct $3,000 in investment losses. Does that include IRAs PLUS regular investment activities? Also, will any interest I accrue via CDs or dividends from stocks or mutual funds essentially be tax-free now since I have such a large investment loss? Or is that a different category? Please help, I really screwed up this year and am hoping somebody has some suggestions to make this better. Thanks in advance! A: Actually, you have lots of questions here. First, investment losses are to be offset against investment gains (that includes any capital gain distributions from your mutual funds), but no greater than $3000 per year can be deducted on your tax return. The balance of the losses can be carried forward to future tax years, but no greater than $3000 can be written off in a
