I think I've got it, now

Just in case you were wondering, things happen in this order:

• ST carryover loss becomes* ST loss
• LT carryover loss becomes LT28 loss
• ST loss kills LT gain (i.e., just the net part: LT28 gain first, then LT25 gain, then LT15 gain), then kills ORD3000**, then carries over
• LT28 loss kills LT25 gain, then kills LT15 gain, then becomes LT loss
• LT25 loss kills LT15 gain, then kills LT28 gain, then becomes LT loss
• LT15 loss kills LT28 gain, then kills LT25 gain, then becomes LT loss
• LT loss kills ST gain, then kills ORD3000, then carries over
• ORD loss kills LT25 gain, LT28 gain, LT15 gain, and QDIVs in that order
• 15%MAGIC*** turns LT25 gain ordinary (15%), then turns LT28 gain ordinary (15%), then kills (as of 2008) LT15 gain and QDIVs

Looks like nearly all of these clauses will be coming into play in the coming year.

I particularly like the nasty features of LT28 gain (the sort you get from investing in gold): if you can't hit it with losses or 15%MAGIC, then it gets taxed at 28% even if you're not in the 28% bracket. Fortunately, we seem to have some losses.

In other not entirely unrelated news, the Icelandic Krona is still not trading. Wheee.


(*) where applicable, "becomes FOO loss" means "kills FOO gain then becomes FOO loss"
(**) ORD = all of your other income minus deductions and exemptions,
ORD3000 = ORD with the exemptions added back, if that's a gain, but then capped at 3000
(***) 15%MAGIC is the top of the 15% bracket minus ORD gain, if that happens to be smaller