@Sirtaxedalot wrote:
If for example, i have $15000 in interest income, can i reduce it down to $2000 or only down to $12000? thanks again
Your total ordinary income will be reduced by $3,000. The $3,000 is not specifically applied to any particular type of income. It reduces your total income. If you want to think of it as specifically reducing your $15,000 of interest income, subtracting $3,000 would reduce it to $12,000. What you will see on your Form 1040 is a net capital loss of $3,000 included in the sum of your income. The remaining capital loss is carried over to future years.
You have no choice about how capital losses are used. TurboTax will automatically do the calculations according to the tax law, and there is only one way to do it. There are no options.
