You are allowed to deduct up to $3000 of capital losses against ordinary income, each year. Any excess is treated as a capital loss carry forward.
If you used TurboTax (TT) last year, that will happen automatically. A short term carry over will show on line 6 of Schedule D and a long term carry over on line 14. Your forms list will also have a carry over work sheet.
There's one other way to check this. In TurboTax (TT), enter at:
- Federal Taxes tab
-
Wages & Income
Scroll down to:
-Investment Income
-Capital Loss carryover. Click start. The carry over box will be pre-populated with last years's amount. If you didn't use TT last year, you will enter your amount here.
