The Limitation on Capital Losses

Learn or review the limitation on capital losses of IRC § 1211. This video covers this disallowance provision, as well as the treatment of individuals' capital loss carryforward under IRC § 1212. Professor Lederman & Professor Emily Cauble co-host. A prior video in this series (   • Capital Gains & Losses: An Introduction  ) covers how to determine if a gain or loss is capital or ordinary. A separate video (   • The Capital Gains Preference  ) covers the capital gains preference applicable to individuals.

CONTENTS OF THIS VIDEO:
00:00 - Introduction & Overview
00:28 - Caveat (this is not the video addressing how to determine if a gain/loss is capital)
00:42 - Recommended Initial Set-Up For Capital Gains & Losses Problems
01:17 - Recommended Approach
01:58 - IRC § 1211
02:55 - The Concept of "Basketing"
03:05 - Example Applying IRC § 1211
04:34 - IRC § 1212
06:30 - IRC § 1222
07:21 - Applying IRC § 1212 to the Example
08:37 - Determining the Holding Period of the Carried Forward Losses
09:44 - The Carryover Numbers In the Example
11:45 - Caution: "Excess of" Subtractions Cannot Yield a Negative Number
12:08 - Example With the Addition of Qualified Dividend Income
13:07 - Code Section Summary & Subscribe Button

Break Into Tax thanks Stephen Mazza for comments on a draft of this video and Nickolas Cole for outlining the images in the thumbnail. Nothing from Break Into Tax is legal or tax advice.

The image of the basket is from https://www.maxpixel.net/Clipart-Cont..., Creative Commons License CC0 (public domain).

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