I really screwed up and have over $50,000 in investment losses this year! Our gross income from salaries for this year will only be around $50,000.
In addition, I lost $5000 in my Roth IRA. I just read that I can only deduct $3,000 in investment losses. Does that include IRAs PLUS regular investment activities?
Also, will any interest I accrue via CDs or dividends from stocks or mutual funds essentially be tax-free now since I have such a large investment loss? Or is that a different category?
Please help, I really screwed up this year and am hoping somebody has some suggestions to make this better. Thanks in advance!