I'm doing my taxes for 2021 and I have imported my stock transactions for 2021 into TurboTax. I've entered the figures from my 2020 return as requested to calculate my capital loss carryover. I had a large capital loss several years ago that I'm amortizing each year.
Now on the main screen for my 2021 return, the screen where you select which tax area you want to delve into, after having entered my loss info it says my capital loss amount for 2021 is 0. Huh? I checked the figures from the 2020 return and they appear to be correct. So why is it saying 0? I'm entering losses as negative numbers and gains as positive numbers.
From Schedule D 2020:
Short-Term Capital Gain 7: 2854
Long-Term Capital Loss Line 15: -6.972
Allowable Loss Line 21: -3,000
From 1040 2020:
Taxable income: 0
Capital Loss Carry-Over Summary
Carry-over from 2020: -1,118
Total gain: 313
Total loss: 0
Net gain: 313
Capital Loss used in 2021: 1,118
your capital gain / loss for 2021 is zero.... you had a gain of $313 offset by the capital loss carryforward of $1118, which leaves $805.
But that remaining $805 can be used as an ordinary loss as up to $3000 of losses can be taken as ordinary losses each year. Look on Line 7 of Form 1040...do you see $(805)?
therefore your remaining carryforward is zero....
On the income page The 2021 column shows the carryover to 2022 (not your current loss for 2021). 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.
Look at the actual tax forms, not the summary screens in TurboTax. The actual capital loss carryover from 2020 to 2021 does not appear on your 2021 Form 1040. It is on Schedule D line 6 (short-term) and line 14 (long-term). Does the carryover appear on one or both of those lines?
Boy, is this confusing.
Some years back I had a big capital loss and I've been applying it year-by-year to my taxes. I've been doing TurboTax for 4 or 5 years now. It seems to have been working. This year I see that 0 on the screen and I'm thinking ..what? Maybe it's been that way before and I just didn't notice it.
As you folks who have posted seem to be indicating, everything should be okay. As I said I'm concerned about passing the amount that I'm entitled to along to next year, even if it is small at this point.
For 2020 Schedule D line 6 is 0, line 14 is -6,970 and line 16 is -6,972 (rounding ?).
For 2021, I'm on Desktop. I haven't finished the return. I went into forms (first time I ever did this) and looked at 2021 Schedule D, which is flagged as not done, but I opened it anyway. Short term capital loss carryover for 2021 (line 6) is 0 and long term capital loss carryover for 2021 (line 13) is 1181. The column for Alternate Minimum Tax has the same numbers as Regular Tax. (Obviously, I don't owe alternate minimum tax. Seems like the numbers should be 0, but maybe that's not the way it works.)
I went into forms (first time I ever did this) and looked at 2021 Schedule D, which is flagged as not done, but I opened it anyway. Short term capital loss carryover for 2021 (line 6) is 0 and long term capital loss carryover for 2021 (line 13) is 1181.
That looks correct, except that you seem to have a couple of typos here. Schedule D line 13 is not capital loss carryover. I think you mean line 14. And the amount is 1118, not 1181.
Attached below is a Capital Loss Carryover Worksheet that I created in TurboTax using the figures from your posts. This is for the carryover from 2020 to 2021. Yours should look the same. If so, it looks like everything is okay.
I'm concerned about passing the amount that I'm entitled to along to next year, even if it is small at this point.
The carryover to 2022 should not be a problem. You'll see how it comes out when you do your 2022 tax return next year.
The column for Alternate Minimum Tax has the same numbers as Regular Tax. (Obviously, I don't owe alternate minimum tax. Seems like the numbers should be 0, but maybe that's not the way it works.)
That's right. The AMT column should be the same as the regular column.
Seems like you might have used up all the loss in 2021. Even though you can only take a max 3,000 loss each year on your tax return, you can use up more of the loss by first offsetting any gains you had.
You said the carryover loss from 2020 was 1,118 and the amount used in 2021 is 1,118. And that income summary column says 0 for 2021. So you used it all up in 2021 and there is nothing to carryover to 2022. So you are done with the loss. Unless you have zero taxable income this year.
Yes, that is a typo and should be 1118. But it's on line 13, not 14, on the Schedule D for 2021. Just like on the one you posted. And yours and mine match exactly for Schedule D 2021. There is no line 14 on either. Not yet, at least.
So, I guess I'm okay.
Thanks. And thanks to all who posted.
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