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Level 2
posted Mar 9, 2021 3:31:41 PM

Do I need to claim the maximum net capital loss of $3,000 if it is not needed to reduce taxes

I only need to claim a net loss of about $2,100 to get to a zero federal tax liability.  I have additional losses of about $2,000.  Do I need to claim the $3,000 net loss even if it is not entirely needed?

0 3 349
3 Replies
Level 15
Mar 9, 2021 3:40:37 PM

If you have the income to deduct it from, then you must claim it. You are not allowed to decide weather or not to claim it each year. This is true even if your income is say for example, $11,999 (since the first $12K of your income if filing single is tax exempt.)

 

Level 2
Mar 9, 2021 3:42:44 PM

Thank you (:  That is what the program and the calculation by hand do, but I was hoping for another answer!

Level 15
Mar 9, 2021 3:45:06 PM

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

 

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.