You can deduct up to $3,000 in capital losses ($1,500 if you're Married Filing Separately). Losses beyond that amount can be deducted on future returns as a capital loss carryover until the loss is used up.
For example, if your net capital loss in 2023 was $7,000, you're filing as single, and you don’t have capital gains to offset the losses, you could:
- Deduct $3,000 of the loss in tax year 2023.
- Deduct $3,000 in tax year 2024.
- Deduct the remaining $1,000 in tax year 2025.
You can't choose which tax years to apply your carryover to. Carryovers from this year's return must be applied to next year's.
If you copied last year's return over in TurboTax, we automatically include the carryovers. But it's a good idea to keep a written record of your expected carryover amounts to compare against your return.
