Can I deduct investment losses from 2016 tax year for 2018?

[ramsgusom]

I received a 1099-B for 2016, which had some losses. I never deducted these losses for 2016 or 2017. In fact, for 2017, I never received a 1099-B because the account was closed. My 2018 1099-B has some gains for which I have to pay taxes. Can I deduct the losses from 2016?

[CynthiaR · Accepted solution]

It can be confusing knowing how to handle a capital loss carry-forward in a year when you have little or no income to report on your tax return. Your income level may be low enough that you do not need to pay any taxes or even file a return. However, because you have a loss to carry forward, you must file a tax return and declare the loss. If you were in this situation in the past and you did not claim the loss carry-forward because you couldn't use it to offset income, you should amend the past return to show the carry-forward so you can use the losses on your current year or future returns.