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I inadvertently skipped a year of capital loss carry over in 2016 and need to decide if I should amend 2016 before carrying over the loss into 2017 filings

 
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Level 5

I inadvertently skipped a year of capital loss carry over in 2016 and need to decide if I should amend 2016 before carrying over the loss into 2017 filings

According to Publication 17, you will consider the skipped year as a year the loss was used up. Therefore, it will probably benefit you to amend and take advantage of the carryover loss.

"Capital loss carryover.

If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still unused, you can carry it over to later years until it is completely used up.

When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year."

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Level 5

I inadvertently skipped a year of capital loss carry over in 2016 and need to decide if I should amend 2016 before carrying over the loss into 2017 filings

According to Publication 17, you will consider the skipped year as a year the loss was used up. Therefore, it will probably benefit you to amend and take advantage of the carryover loss.

"Capital loss carryover.

If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still unused, you can carry it over to later years until it is completely used up.

When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year."

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