Thanks so much! I have a few follow up questions.
Also, the carryback is allowed only to the extent it doesn’t increase or produce a net operating loss for the carryback year.
Is this net operating measured as the sum of my short term and long term capital gains? For example, if post carryback my short term would be a small loss but my long term would more than offset so my overall line 16 is positive, is that carryback allowed?
Is this election/carryback allowed on state tax returns? If so I assume I would have to file amended tax returns?
The loss is carried to the earliest year first.
I understand it needs to be carried back to the earliest year first, but do I have to maximize the amount of carryback in year 1 first? Say I have 1000 loss from 2024 to carryback, I currently have gains of 200 in 2021, 300 in 2022, and 600 in 2023, do I have to do the full 200 in 2021, or can I choose to carryback 100 for 2021, 300 in 2022, and 600 in 2023? I may have preference to do this as I was in different states in those years.
Should I file the current year return indicating the election and the amount before I file the amended return? If for some reason my amended return is rejected would I amend the 2024 return to undo the election?
Thanks!
