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New Member
posted Oct 28, 2023 8:29:07 AM

Should I amend my 2022 return since I omitted 186,000 of capital losses and showed 42,000 of gains or just wait till 2023 to start using the losses?

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2 Replies
Level 15
Oct 28, 2023 9:55:49 AM

Amend your 2022 return since it will affect your 2023 return. 

Level 15
Oct 28, 2023 7:42:58 PM

If you fail to report these losses on your 2022 tax return, you'll lose them.  You can't carry forward losses that you fail to report on the tax return for the year for which you realized the losses.  The carryforward to 2023 must come from the 2022 tax return.

 

Your amended 2022 tax return will apply $42,000 of the losses to your $42,000 of gains and will likely apply $3,000 of the losses to ordinary 2022 income, leaving $141,000 of losses to carry forward to 2023.