How or where do I claim a capital loss ?

[LindaA]

You'll enter a capital loss in the investment sales section. To claim a capital loss you will need to upgrade to TurboTax Online Premier. Note: If you only have a capital loss carryover from 2016 please see the second set of instructions below.

To enter a capital loss in TurboTax Online:

• Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
• Click Tax Tools (lower left side of the screen).
• Click Tools.
• In the pop-up window, select Topic Search.
• In the I'm looking for: box type, the capital.
• In the results box, scroll down and highlight capital loss, then click GO.
• Follow the onscreen instructions. You'll be prompted to upgrade to Premier if using a lower version of TurboTax Online.

To enter a capital loss carryover in TurboTax Online:

• Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
• Click Tax Tools (lower left side of the screen).
• Click Tools.
• In the pop-up window, select Topic Search.
• In the I'm looking for: box type, the capital.
• In the results box, scroll down and highlight capital loss carryover, then click GO.
• Follow the onscreen instructions.

Please see the FAQs below for more information.

Where do I enter a capital gain or loss?     https://ttlc.intuit.com/replies/5209280

How do I enter my capital loss carryover?    https://ttlc.intuit.com/replies/3301508

[johnkangwa]

Thank you but this only addresses TTO. What is the process for TTD please?

[Raj R]

I need similar information for TTD. I would like to do tax loss harvesting and can't find a way in TTD.

[Cynthiad66]

You'll enter this under the Federal Taxes tab (or Personal, if working in TurboTax Self-Employed/Home & Business), then select Wages & Income, then Investment Income, then Stocks, Mutual Funds, Bonds, Other.

When you sell a capital asset, the difference between its cost basis and the selling price results in a capital gain or loss.

• A capital gain is when your asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
• A capital loss is when you sell the asset for less than its cost basis. Capital losses from investments can be deducted, but not those from personal-use assets, such as your home or personal vehicle.

Your total capital gains for the year minus your total capital losses results in either a net capital gain or a net capital loss.

• Short term capital gains (gains on assets held one year or less) are taxed as ordinary income.
• Long term capital gains (gains on assets held more than one year) are taxed at a more favorable rate than ordinary income.
• Net losses are deductible, but only up to a maximum of $3,000 ($1,500 if married filing separately). Any capital losses you couldn't deduct this year can be carried forward and deducted on future tax returns. This is called a capital loss carryover.

Capital Gains and Losses

[gopalv1957]

I invested some big amount in Notes by a energy company called Aspirity N Enery based out of Minnisotta. After few yeaI lost all the money as the company closed without giving us our investement bank plus promised interest as well. Thoughthis happened  in 2019 and amount lost is close to 50K$. Thi court is still dealing with but no  solution seems to be coming out as promotors have declared as bankrupu. Can we clain capital loss as long as i have a record of the investment details and statements starting from this year 2021 knowing the limit is $3000 per year. if so what forms to be filled up so that I can claim upto allowed limit every year until I claim all the loss in years ahead.

Any advise would be highly appreciated.

Thanks in advance.

Venkatraman Gopalakrishnan

[Critter-3 · Accepted solution]

You can take a deduction for a nonbusiness debt only if the entire debt is uncollectable. You do not have to wait until the entire debt is overdue to determine whether it is worthless. Nor do you have to file a lawsuit to collect the debt, obtain a judgment against the debtor, and then try, unsuccessfully, to collect on it — a process that can take years.

All that is required is for you to show that there is no longer any chance that the loan will be repaid. Obviously, you must show that you took reasonable steps to collect the debt. But even such collection efforts would not be required if the debtor files for bankruptcy, since such a filing stops all debt collection efforts by the debtor’s creditors.

Nonbusiness bad debts are treated as short-term capital losses. Such losses are first deducted from your short-term capital gains, if any. If your net short-term loss exceed your short-term gains, your net short-term capital losses are then deducted from your total long-term capital gains for the year. If your net short-term loss exceeds the long-term gain, the excess short-term loss is deductible against up to $3,000 of your other income. Any amount remaining can be carried forward and deducted in future years. 

• Report this in TurboTax by using these steps:
  • In the search box, upper right type nonbusiness bad debt > Jump to nonbusiness bad debt
  • Continue to the screen Choose the type of investment you sold
  • Select Uncollectible Debt (Nonbusiness Bad Debt)
  • Continue to enter your information.