Capital loss

[sandy861]

My tax loss is over 100k for tax year 2022 from stocks. My question is if i gain say 50k in the year 2023 can i claim against 97k (assuming i claim 3k in the year 2022) or i can only claim 3k even in year 2023? If i can only claim 3k a year i will not complete that 100k any time soon. can you help in this case

[tagteam · Accepted solution]

You could use $50k of the $97k carryover loss to offset the $50k gain and then an extra $3k could be used as an offset against all other 2023 income.

Based upon those figures, you would have a $44k carryover loss to 2024.

[VolvoGirl]

Yes, You get to first offset the loss against any gains you have each year so that can use more of it up.  Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year.  Turbo Tax does all the calculations for you.  Just enter the prior year carryover amount.

[sandy861]

Thanks for reply. So we can claim 50k on prev year capital loses? Just curious where did you get that 50k from .Thanks !

[tagteam]

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@sandy861 wrote:

Thanks for reply. So we can claim 50k on prev year capital loses? Just curious where did you get that 50k from.

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I got the $50k from your original post:

My tax loss is over 100k for tax year 2022 from stocks. My question is if i gain say 50k in the year 2023

If you have a $97k carryover to 2023 and $50k in capital gains in 2023, then you can use $50k of the $97k carryover to completely offset the $50k in gain. That would leave a $47k loss of which you could use $3k to offset other 2023 income and then a $44k carryover to 2024.

[sandy861]

Got it . Thank you . So we can claim this capital loss separate from 3k .

This is very helpful. I need not wait many years.(Provided i make gains)

[tagteam]

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@sandy861 wrote:

This is very helpful. I need not wait many years.(Provided i make gains)

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Exactly. You can always use any capital losses you have to offset your capital gains.