Long Term capital loss

Forum|Forum|4 years ago
June 26, 2022
2 replies
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My domestic partner and I had a long term capital loss a few years ago. I put the entire loss on his tax return and I'm now wondering if there is a way to move the remaining carryover off of his return and onto mine.

rjs

Level 15

No, there's no way for him to give you his remaining long-term capital loss carryover. When you put the original loss on his tax return, you made it all his. If the sale that produced the loss was a sale of property that you each owned a share of, you should have split the sale and the loss between your two tax returns in proportion to your shares of ownership.

I suppose you could go back and file amended returns for both you and your partner for the year of the loss and all subsequent years, to split the loss the way it should have been split. That would probably mean that he would have to pay additional tax for each year. Your tax might be reduced, but it's too late to get a refund for any year earlier than 2019. You can file the amended returns to correct the capital loss and the carryovers, but if an amended return for 2018 or earlier shows a refund, you will not get the refund. If it shows additional tax due, you have to pay the additional tax.

Depending on how your state treats capital losses, you might have to file amended state returns for each year as well.