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Thank you VolvoGirl, your answer was very helpful. There is a worksheet, Worksheet 4-1 in Pub550 on page 66, that allows the Carryover loss from 2019 to 2020 to be calculated. And, as you said, the Carryover loss was not reduced because of putting the $3,000 on line 6 of the 2019 1040 Federal Tax return.

 

Thanks,

 

M.