Audit Proofing Stratagies > Deductions & Expenses - Capital Gains and
Checklist of What Rules and Information the IRS Will Be Verifying
Deductions & Expenses - Capital Gains and
____ The excess of capital losses over capital gains is deductible from ordinary income but the deduction is limited to the lesser of (1) the excess or (2) $3,000. (The portion of your excess capital losses over capital gains is carried over to the succeeding years.)
____ If you and your spouse filed separate returns, your deduction for net capital losses is limited to $1,500.
____ If you held the property for 12 months or less, the gain (or loss) was reported as a short-term capital gain (or loss).
____ If you had a taxable gain on the sale of your residence because the one you bought cost less than the one you sold, it was reported as a capital gain.
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