OK in this scenario :
"If you and your spouse once filed separate returns and are
now filing a joint return, combine your separate
capital loss carryovers." Pub 550.
The TaxACT software has two columns for carryover losses, the taxpayer's and spouse's.
Upon death of a spouse, the carryover is lost and the surviving spouse can't use it.
I don't know how TurboTax handles this (haven't tried it).
"However, if you and your spouse once filed a joint return and are
now filing separate returns, any capital loss carryover
from the joint return can be deducted
only on the return of the spouse who actually had the loss."
Does "the loss" refer to the transaction loss, or the carryover loss?
(looks like the transaction loss).
What happens when both spouses had a loss? I don't know. (haven't tried that either).
