My 1040 return has Capital Loss Carryover deduction with maximum allowed of -$3000 every tax year.
I am now filing out a Worksheet 2 Pub 536 to calculate absorbed NOL in 2018. This worksheet calculates Modified Taxable Income.
My question is:
Do I need to add the $3000 carryover deduction to Taxable Income in Line 3, when calculating Modified Taxable Income using this Worksheet 2 Pub 536?
Line 3. says:
"Enter as positive number any net capital loss deduction" - Does this mean that I must enter the $3000 carryover? or does this apply only to current 2018 loss (not to carryovers from previous years).
Entering the $3000 wouldn't be good because it wastes $3000 from the NOL. Also, the $3000 was previously deducted on 1045 Schedule A-NOL form when I carried the NOL forward, so I would be deducting it from my NOL twice.
Thank you in advance.
