Capital gains carrover

[tzly6p]

TurboTax says it's applying 22,396 of my carryover loss. Yet my 1040 only shows 3,000 applied????

[rjs]

The capital loss carryover is applied first to any capital gains that you have this year. You can see the capital loss carryovers on Schedule D line 6 (short-term) and line 14 (long-term). If the capital gains don't use up all of the loss, up to $3,000 of the capital loss can be applied against ordinary income. That's the $3,000 that you see on Form 1040 line 7. If that still doesn't use up all of the loss, the remaining loss is carried over to next year. The capital loss will continue to be carried over from year to year until it is used up.

[tzly6p]

Where do I see the capital gains the loss carryover is applied against? This amount is what I would pay taxes on except the loss carryover covers it, correct? Shouldn't it show on the 1040?

[rjs]

No, the details are not on Form 1040. It's all on Schedule D. Gains and losses are summarized in column (h). The net amounts, after applying the loss carryovers, are on lines 7 and 15. Then Part III on page 2 calculates the amount that goes to Form 1040 line 7. Look at your Schedule D and see how the calculations are done.

[tzly6p]

Thank you. I finally understand.