Solved: Does current year capital loss get deducted after previous year loss carryovers are used up?
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Does current year capital loss get deducted after previous year loss carryovers are used up?

I have a $6,000 capital loss claimed for 2017 taxes.   I understand that $3,000 of the loss is applied to 2017 taxes, and $3,000 is a carryover to 2018.   I will have a further $6,000 loss in 2018, will this amount be carried over to 2019 and 2020?

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New Member

Does current year capital loss get deducted after previous year loss carryovers are used up?

That's correct. Each tax year you can use $3,000 ($1,500 for married filing separately) of your capital loss carryover to offset ordinary income, even if you do not have other capital gains or losses in that year.

If you have no gains in 2018 and a further $6,000 loss, you will have a $6,000 loss carryover to 2019 tax year. ($9,000 - $3,000 (2018 deducted).

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New Member

Does current year capital loss get deducted after previous year loss carryovers are used up?

That's correct. Each tax year you can use $3,000 ($1,500 for married filing separately) of your capital loss carryover to offset ordinary income, even if you do not have other capital gains or losses in that year.

If you have no gains in 2018 and a further $6,000 loss, you will have a $6,000 loss carryover to 2019 tax year. ($9,000 - $3,000 (2018 deducted).

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