Q. Where do I deduct losses from sale of stocks?
A. Your net loss is calculated on Schedule D and carried to line 7 of form 1040. You are only allowed to deduct $3000 of losses, each year, against ordinary income. So, line 7 will be not more than (minus) $3000. Any excess will carry over to next year.
In TurboTax (TT), enter your stock sales at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds, Other
