AGI

alspeirs | 9:23 am | January 2, 2008 | finance

To understand AGI you should know that adjusted gross income fully includes your net capital gains and losses. The only exception for this is if your net capital loss exceeds $3,000 and you can only take that much of the loss in a tax year and must carry the rest on to next year. People use carried-over losses to reduce their capital gains in the future year. You can carry-over your losses as much as you like until they are all used up. If you die before using them up then they are lost completely. Short-term and long-term losses keep their title and character when they are carried over.