How to calculate short term gains from losses?

[neverenough]

Hi I tried day trading this year for the first time and not sure how to use the loss deductions.

 If I have 10k short term capital gains and 15k capital losses at the end of the year how do the taxes work?

its showing a net of -5k , I know I can only claim up to -3k deduction. so do i claim a -3k deduction and roll the other -2k to next year or do i subtract the -3k deduction from the 10k gain and pay taxes on the 7k?

[jerry2000 · Accepted solution]

Whoa! You don't calculate that, Turtbotax does. All you do is to enter each and every one of your trades into Turbotax. In the current year, all capital losses are first used to offset capital gains. Then, if there is still capital loss, $3,000 of that loss will be used to offset ordinary income. If there is still capital loss left over, it will be carried forward and will be usable next tax year.

[taxlady345]

And can the -2k be used for an AMT adjustment?

[jerry2000]

No. Once all losses are offset, only $3k of remaining loss can be used in any one year.

[fanfare]

As of TurboTAX 2016 you may now enter grand subtotals for Box D transactions on Line 8a of Schedule D, and  grand subtotals for Box A transactions on Line 1a of Schedule D  instead of typing in all the transactions.

After "did you get a 1099-B or brokerage statement?" click YES

Under "Tell us about your XYZ 1099-B"

For Long Term, Put Box D  in the Sale category pulldown.

Enter the Total Proceeds and the Total cost basis for that Category.

Click Done.