I have a forex loss of around 20K and I have been reading up in this forum and else where that I can report this on line 21 of 1040, however my CPA who is doing my taxes (he has no idea of forex) insists line 21 can only take loss of 3000 and have to forward the remaining losses to next year.
Is this true? I checked form 1040 and it seems he is right, the line clearly states it should be the lesser of line 16 or $3000 (treat both numbers as positive even if loss), so in my case he put $3000 in line 21.

If I can report the entire amount as a loss for year 2006 then I can get some money back from my taxes to offset my huge loss.

Please help me, any assitance is appreciated.

Thanks,

- Philips.