- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
No. You do not have to file the schedule D in order to preserve your carryover loss for future years. IRS Pub 550, page 66 states, "Capital loss carryover can be used in later years until it is completely used up." Also, IRS Pub 550, page 23 list an exemption for filing Schedule D:
"Exceptions to filing Form 8949 and Schedule D (Form 1040). There are certain situations where you may not have to file Form 8949 and/or Schedule D (Form 1040). Exception 1. You do not have to file Form 8949 or Schedule D (Form 1040) if you have no capital losses and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a. (If any Form(s) 1099-DIV you receive have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain), you do not qualify for this exception.) If you qualify for this exception, report your capital gain distributions directly on line 7 of Form 1040 or 1040-SR (and check the box). Also, use the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 or 1040-SR instructions to figure your tax."
Even if exceptions apply for filing Schedule D, I strongly suggest keeping records of your loss carryovers.
**Mark the post that answers your question by clicking on "Mark as Best Answer"