Could you please explain how capital gains/Losses continues to the tax next year?

[geobon72]

I had a loss several years ago and each year I continue to get a -$3,000 credit on line 7/7A. Why is this and how long will this go on?

[VolvoGirl · Accepted solution]

If you don't have a lot of gains to offset the loss each year you have to keep carrying over the remaining loss.

Each year you get to first offset the carryover 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 if there is still a loss, you can take a max loss of 3,000 per year.

Check Schedule D line 6 and 14. Then there are 2 worksheets….
Capital Loss Carryover worksheet showing the carryover from the prior year and the current amounts.
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 worksheets as a pdf file to your computer to see the Capital Loss worksheets. You need to use Online Premium to enter a Capital Loss Carryover and investments. Or any of the Desktop programs. In the Desktop program you can switch to Forms Mode and open the worksheets.

[rjs]

"how long will this go on?"

The capital loss is carried over from year to year indefinitely, until it is used up or you die.