I have a carry over capital loss of 38927, and a net gain of 9038. I see capital loss used in 2016 is 12037. Wondering why it is (2999) more than the the net gain. thx.

[AnthonyC · Accepted solution]

In addition to being able to use the carryover capital loss to offset your current year capital gain, you are also allowed to use up to $3,000 of carryover capital loss to deduct from ordinary income for the current year.

https://www.irs.gov/publications/p550/ch04.html#en_US_2016_publink100010729

[HL1]

If the capital loss carry over of $3,000 bring the AGI to negative for current year.  Can partial carry over, less than $3,000, be used so the AGI for current year is 0 and the remaining be used in following year?

[DianeW777]

The capital loss carryover worksheet will provide the amount of your carryover to the following year. Because of certain rules, having to do with IRS ordering rules in the way that deductions are applied against your income (even when an individual falls below the IRS filing threshold), your capital loss may slowly be eaten away -- even if you don't use it.

In short, it's a complicated subject.  To understand how long-term capital loss carryovers are treated for those who do not file an income tax return, or who have low taxable income, we respectfully direct you to some of our source materials.  The underlying concepts (and some useful examples) are discussed in depth on the following webpage.

• Do I  have to use a capital loss carryforward even if I have no taxable income?
• IRS Topic 409