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[–] 0110001111 [S] 0 points 1 point (+1|-0) ago 

I apply for a tax credit. The goal is to modify my W4 by exempting myself from a tax year, since the capital loss for my future filing year will be more than my income. Rather than keeping the withholding where they are,i want to modify the W4 to withhold less money per paycheck to match the capital loss.

Example:

Annual Income: 55,000 Capital Loss Credit: 400,000 W4 Total Personall Allowances : 2 Deductions and Adjustments: -25,000

However, is this a good idea? Or should I file my taxes regularly in April and take into account the capital loss then?

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[–] ilikeskittles ago 

Well when did you have the loss? In 2017? Then take as much of it as you can when you file your return. But you can't write of more than your income I don't believe. I'm not an accountant but I've owned my own business for a long time. I think you're going to need to spread that out over a number of years. So yes you can max out your deductions and you should be okay. But, I'd call a "good" CPA and ask them.

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[–] 0110001111 [S] ago 

It qualifies for a 10 year carryover which is nice. I am aware that the maximum you can claim is the tax witholding for that year (Example if you paid 25K in taxes, you get 25K back). However, I am simply wondering if applying the carry over into my W4 is a good idea, or if i should apply it during filing instead. Time to go find a good CPA