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jocvdonaton
Returning Member

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

TurboTax says: Capital loss carryover from 2020 (-79.00)
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7 Replies
FangxiaL
Expert Alumni

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

Yes, it is considered capital loss carryover from 2020 if it is not incurred in 2021.

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jocvdonaton
Returning Member

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

Thanks. Just to clarify: even if that amount was used in line 7 in the 2020 1040 to offset (reduce) my total income?

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

You used all the loss on your 2020 return but it also carried over to 2021?  That is possible.  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.

 

The current year carryover loss from the prior year is on schedule D line 6 & 14.

 

On the income page The 2021 column shows the carryover to 2022) not your current loss for 2021).  The 2020 column shows the carryover to 2021 not the loss for 2020.

 

And Schedule D doesn't actually show the carryover amount to next year. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2.  Line 16 will be your total loss and line 21 should be a max loss of 3,000.  The difference between line 16 and 21 is the carryover loss for next year.

 

And 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.

 

There is also a Carryover Worksheet. There is a Capital Loss Carryover Worksheet showing the carryover from the prior year and the current amounts.  Then there is also the 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 worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.

 

In the Desktop program you can go to Forms and find it in the list in the left column.

 

 

 

 

jocvdonaton
Returning Member

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

Thank you VolvoGirl. This was helpful.

 

FangxiaL
Expert Alumni

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

The same loss cannot be deducted over and over again. If it reduced your 2020 income already, it should not be carried over to 2021 because it has been used up. Check to see if the net capital loss in 2020 was $3079, leaving $79 for 2021. If you used TurboTax last year, any unused loss should be carried over automatically. 

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jocvdonaton
Returning Member

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

Thanks Fangxial.

 

I had capital loss in 2020 that was added to line 7 in my 1040. My AGI was lower because of that. Is this considered a capital loss carryover from 2020?

Yes the loss on line 7 can carryover to the next year.  Read Pub 550 page 66 and 67 on Figuring your Carryover.  So even though it shows it on 1040 it doesn't reduce the carryover to the next year.

 

Fill out the worksheet on page 66.

http://www.irs.gov/pub/irs-pdf/p550.pdf

 

And look at those worksheets in your 2020 return to see the carryover amount to 2021.

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