The IRS doesn't track it, yet, that I know of.
TurboTax will prepare a capital loss carryover worksheet every year.
If you have a net $40K loss; you put -$3000 on line 13 of form 1040 and carry over $37K to next year.
Next year you reduce the $37K by any capital gains (both long & short term) you realize in 2014, put another $3K on line 13 and carry the balance to the following year.
Example: you have $10k gains in 2014
37,000 capital loss carried forward from 2013
- 10,000 capital gains in 2014
= 27,000 net capital loss for 2014
- 3,000 allowed deduction
= 24,000 carried over to 2015
All of that will be shown on Schedule D and the worksheet
