Even if you don’t file a return some year you have to reduce the carryover. This is from the IRS Pub 550 page 68 middle of last column:
"When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year. "
Here is pub 550… <a rel="nofollow" target="_blank" href="
http://www.irs.gov/pub/irs-pdf/p550.pdf">http://www.irs.gov/pub/irs-pdf/p550.pdf</a>
