Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
sbvadapalli4
New Member

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.

 
1 Best answer

Accepted Solutions
AnthonyC
Level 7

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.

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

View solution in original post

3 Replies
AnthonyC
Level 7

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.

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
Returning Member

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.

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
Employee Tax Expert

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.

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.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v