Capital Gains

[fredgbarb]

I have a total "capital gains loss" of ($31,000.00) for calendar year 2022 which was reported in TurboTax.  I'm looking at calendar year 2023 and need to know what TurboTax will do with the following being reported for 2023.

1.  My loss carryover from tax year 2022 should be ($28,000.00) since I should have reported a capital gain loss of ($3,000.00.) as the maximum loss I can claim for calendar year 2022.

2.  For calendar year 2023 I am projecting a capital gains of $5,000.00.  (No capital gains at all and the total loss carryover for 2023 will be ($23,000.00)?

3.  What will be my ending loss carryover for calendar year 2023?

4.  What will be my reported gain or loss for calendar year 2023?

Thanks for your response.

[NCperson]

to restate this

1) you had a $31,000 net loss in 2022

2) $3,000 of that was used, as permitted, reduce your ordinary income

3) your tax loss carry forward from 2022 ro 2023 is $28,000

4) in 2023, you anticipate a net gain of $5,000

5) $3,000 will be used to reduce your ordinary income

6) you will report no gain or loss in 2023 (the $5,000 gain is netted into the tax loss cary forward, so there is no capital income to report)

7) your tax loss carry forward from 2023 to 2024 will be $20,000 ($28,000 less $5,000 less $3,000)

[tagteam]

@NCperson is spot on with the figures, @fredgbarb 

I just wanted to add that caution is required if you own any mutual funds since there is really no way of knowing, for certain, the amount of capital gain distributions until the end, or near the end, of the calendar year.

[VolvoGirl]

Here is how to see it in Turbo Tax.

On the income page The 2022 column shows the carryover to 2023 (not your current loss for 2022). Schedule D doesn't actually show the carryover amount. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2. Line 16 will be your total loss and line 21 should be a max loss of 3,000. The difference between line 16 and 21 is the carryover loss for next year.

There is also a Carryover Worksheet showing the carryover from the prior year and the current amounts. Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

In the Online version you have to save your return with all the worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.

In the Desktop program you can go to Forms and find it in the list in the left column.

But if you have a negative AGI or negative taxable income it will show up on 1040 BUT it won't reduce the carryover to the next year.