Business & farm

I would agree something seems wrong with TT calc. 

 

your capital loss carryover is being reduced by the 1231 gain and then you get a $3,000 capital loss which is proper. but then TT is also treating the 1231 gain as passive income reducing your passive loss c/o which seems its double counting.

 

example

10000 1231 gain

12000 passive loss carryover

30000 capital loss carryover

so it would seem the c/o's in total should be 32000 further reduced by the 3000 capital loss allowed so you should end up with 

12000 passive loss carryover and 17000 capital loss carryover but TT is coming up with

2000 passive loss carryover and 17000 capital loss carryover