Re: complexity of tax forms [was Money, etc. Reform and a DVL]

Kathy in the Rocky Mountains wrote:
> 
> I spoke with a bus driver this past weekend (makes less than 20K) who is
> flying across the country to meet with his accountant.  He has many
> losses to carry forward from this bear market.

Dear Kathy,

One may deduct these losses (presumably long term) at the
rate of $3000/yr. on Schedule D.  (no, you can't use the EZ
form, but, even Schedule 1040 plus Schedule D is no big deal)

I recently saw a complaint that "mutual funds" did not
enjoy the same ability to offset losses, as their losses
were only offset for 3 (possibly 5) years.

However, I had losses in 1989, and last year I exhausted
the $3000 deduction.  While mutual funds have a time
limit for such deductions, we, as individuals are permitted
to deduct these "for ever."

So, I don't see this as a complicated problem.

However, I don't know how the IRS came up with $3000, and,
it is, at the least, not adjusted for inflation.  Yet,
we have had modest inflation for 10-15 years.

Regards,

Curtiss

P.S.  I have never hired an accountant to do my tax forms.
I am intrigued by the H&R Block recent ads, that let me
bring in prior filings, and they inspect for additional
"gains" to be returned to the tax payer.

There is an IRS publication that everyone should get.  It is
a "blue book" -- instructions -- that's about 3/8" thick (there
is a corresponding red one for small businesses).  I often
turn to this publication if I have a question, and, most often,
the question is answered here.
-- 


           W. Curtiss Priest, Director, CITS
        Research Affiliate, Culture & Media, MIT
      Center for Information, Technology & Society
         466 Pleasant St., Melrose, MA  02176
   781-662-4044  BMSLIB@MIT.EDU http://Cybertrails.org