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adani
New Member

A friend has realized capital tax loss of $30,000 in 2016. Can he report $3000 tax loss each year over the next 10 years instead of reporting it all $30,000 in 2016?

 
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Coleen3
Intuit Alumni

A friend has realized capital tax loss of $30,000 in 2016. Can he report $3000 tax loss each year over the next 10 years instead of reporting it all $30,000 in 2016?

That is exactly what he has to do. The loss will show on Schedule D and is limited to $3000 per year.

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4 Replies
adani
New Member

A friend has realized capital tax loss of $30,000 in 2016. Can he report $3000 tax loss each year over the next 10 years instead of reporting it all $30,000 in 2016?

What if he only shows $3000 in Schedule D instead of $30,000 and keep doing it for next 10 years?
Coleen3
Intuit Alumni

A friend has realized capital tax loss of $30,000 in 2016. Can he report $3000 tax loss each year over the next 10 years instead of reporting it all $30,000 in 2016?

That is exactly what he has to do. The loss will show on Schedule D and is limited to $3000 per year.

View solution in original post

fanfare
Level 15

A friend has realized capital tax loss of $30,000 in 2016. Can he report $3000 tax loss each year over the next 10 years instead of reporting it all $30,000 in 2016?

keep the capital loss carryforward worksheet in your tax records. You're going to need it.
Meanwhile any gains will draw upon that loss and could use it up.
VolvoGirl
Level 15

A friend has realized capital tax loss of $30,000 in 2016. Can he report $3000 tax loss each year over the next 10 years instead of reporting it all $30,000 in 2016?

Well you heave to enter the full amount the first year, then after applying it against any and all of the gains you can take a 3,000 max loss.  Then the rest is carried over until it's used up.  But you have to carry over the full remaining amount each year and first apply it to any gains each year before taking the 3,000 loss.  So it might get used up faster.
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