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gmntr40
Returning Member

Possible to 'fix' a wrong Long-term Capital Loss item, without filing an Amended return?

I reside abroad and I file only US Federal returns.

In my 2019 Federal Return I made a wrong Long-term Capital Loss claim in Schedule D that I want to delete.

I then went ahead and prepared an Amended 2019 Tax return deleting the item.

 

I noticed that my amended return shows no balance due or refund amount.

Also the Form 1040X shows that Columns A. B. and C. are empty.

Schedule D is updated with the new number and looks OK.

 

Is there a practical way to fix (delete) my Long-term Capital Loss carryover in the 2020 Return, without filing the Amend?

Or would I be considered guilty by the IRS regardless, for misreporting a Capital Loss claim in 2019?

 

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2 Replies

Possible to 'fix' a wrong Long-term Capital Loss item, without filing an Amended return?

can't explain why 1040-X doesn't show columns A,B and C,

if capital losses after removing the incorrect one still equals or exceed $3,000 there will be no change in your tax because the capital loss deduction would remain the same at $3,000.   regardless you must correct the capital loss carryforward for 2020

gmntr40
Returning Member

Possible to 'fix' a wrong Long-term Capital Loss item, without filing an Amended return?

Thank you. Indeed, the corrected capital loss still exceeds $3000 therefore my tax due didn't change.

Since I instructed TurboTax 2020 to import directly from the Amended 2019 return that I prepared but not mailed yet, the carry forward numbers are automatically updated to the correct ones.

The question remains whether I still need to file the Amended 2019, or whether using the corrected carryovers for the 2020 is enough.

 

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