I have a further question regarding long term capital loss carryover.
For tax year 2023, I had long-term capital losses of $7,742 with no long-term capital gains, no short-term capital gains and no short-term capital losses. That gave me a total of $7,742 in losses for the 2023 tax year. Turbo Tax applied $3,000 of the long-term capital losses to my regular income to reduce it for tax purposes. That made sense to me, although the Capital Loss Carryover Worksheet that Turbo Tax calculated has me confused. It did two calculations--Regular Tax and Alternative Minimum Tax. For Alternative Minimum Tax, it calculated a potential carryover to 2024 of $4,742 which is logical to me because it represents what was left of my original loss after $3,000 was used to lower my regular income in 2023. However, for Regular Tax, it calculated the full $7,742 as being available for carryover to 2024. That is not logical to me as I see $3,000 of my loss having been used in 2023, but let's press on to 2024.
For tax year 2024, I have $25,477 in long-term capital gains. As I expected, Turbo Tax has determined I do not owe Alternative Minimum Tax. When it figures my Regular Tax, Turbo Tax uses the carryover it figured of $7,742--but that amount is not logical to me and thus feels wrong. I had a long-term capital loss of $7,742 in 2023. My regular income in 2023 was reduced by $3,000 which allowed me to save on my taxes. It looks to me like I am being allowed to take that $3,000 loss again in 2024 (this time applied to long-term capital gains instead of regular income) along with the $4,742 that was not used in 2023. I get the use of $4,742 in 2023 long-term capital losses against the 2024 long-term capital gains--that part of the carryover makes sense to me. What I don't understand is how it appears that I am being allowed to use the $3,000 that I used against regular income in 2023 again in 2024, this time against Long-term capital gains. Where am I going wrong?
