Carry over not calcuated correctly

3 replies
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I have Capital loss carry over from 2023 of -16000; Instead of applying only 3000 for 2024, it applies entire 16000 and adjusting which is incorrect. I am using the desktop version that I bought from Costco.

rjsAnswer

Level 15

Where exactly do you see the $16,000 being applied? On what form and what line number? Is it being applied against capital gain on Schedule D? There is no limit to the amount of capital loss that can be used to offset capital gain. The $3,000 limit applies to the amount of capital loss that can be used to offset ordinary income.

rjs

Answer

Level 15

rajarajanAuthor

Level 2

From 2023 - Net short-term capital gain/loss -$18,356.00. Net long-term capital gain/loss -$1,453.00

deducted 3000$ for 2023; remaining was carried forward; So short-term capital gain/loss -$15,356.00 and long-term capital gain/loss -$1,453.00; Total of 16809$ loss carried over.

In 2024, short-term capital gain $7,140.33 and long-term capital gain $17,989.90 total of 25,130.23 gain.

The entire 16809$ is deducted from the gain 25,130.23. Based on your input, seems this is how it is supposed to calculate. Thanks for the help

dmertz

Level 15

Expert Reviewed

As rjs suggests, if you have 2024 capital gains, your capital losses, including your carryover loss, are required to be applied to the capital gains. If any capital losses remain after being applied to capital gains, a maximum of $3,000 can then be applied to ordinary income. Only if any is left after that do any capital losses carry over to 2025.