Hi George,
Thank you for information and kind reply. After reading your reply, I got more questions. suppose a person (assume single status) has capital loss 21k in 2021. in 2021 tax return, he/she can deduct 3k loss, and carry 18k loss to 2022. Then he/she choose 475f before 4/18/2022,
my question is:
1: when he/she file 2022 return, his/her capital loss carry over to 2022 is 18k which he/she can only deduct 3k loss (because it was capital loss in 2021 when he/she did not select 475f),
can he/she still carry remaining 15k capital loss to 2023 and beyond even he made 475f selection for 2022?
2: after he/she made 475f selection before 4/18/2022, assume he/she did not has w2 income or and other income in 2022, 2023 and beyond, only possible income is from stock treading. Suppose he/she had bad year in 2022 and he/she had capital loss (now consider as original loss) 25k in 2022, can he/she carry 25k original loss to 2023 and beyond? The reason I ask question 2 is because I have impression that you can only carry original loss limit to 80% of your taxable income of next year (in this case 2023). But since the person do not have any other taxable income but loss here, it seems he/she cannot carry original loss 25k to next year (zero * 80% = zero) , is it the case? Thanks a lot.
