I have read several articles about capital loss carry over and the $3000 deduction limit, I, however, still feel that TurboTax's calculation for me is wrong. Please help!
My situation:
* Capital loss carry over from 2018: $10,000 (hypothetically)
* 2019 capital gain: $3,100 (hypothetically, a number higher than 3000)
My understanding of how capital carry over should be calculated:
* I can use $3000 from my carried over capital loss to offset my gain in 2019.
* This means that I need to pay capital gain tax only for $3100 - $3000 = $100 in 2019.
* My capital loss carry over will be $10,000 - $3,000 = $7,000 next year.
What TurboTax calculated:
* Capital loss carry over next year is : $3,900 (which seems to be $10,000 - $3,000 - $3,100.)
* It doesn't seems like I'm taxed for the $3,100 - $3,000 = $100 portion.
I'm scratching my head to try to make sense of the TurboTax calculation. I mainly have two questions:
* Is the $3,000 portion being deducted twice from the capital loss carry over?
* Can I, like TurboTax did, offset the entirety of my $3,100 2019 capital gain? If so, what does the $3,000 limit mean?
Thanks in advanced!
