Investors & landlords

The way the carryover works in subsequent years is this:

Each year, the entire remaining loss is available to offset that year's capital gains, if any. In addition, if there is loss remaining after offsetting all of that year's capital gains, then up to $3,000 of the remaining loss is used to offset ordinary income. Any loss remaining is carried over to the next year. That process continues until the loss is completely used up. You must claim the remaining loss each year, whether you have capital gains that year or not. Turbotax takes care of the calculations for you.

The rules and process are described in some detail in IRS Pub. 550, Investment Income and Expenses, at this link:

http://www.irs.gov/pub/irs-pdf/p550.pdf

You would be well advised to read the rules carefully (starts on page 68)