Is it possible to amend a past year return to use current year's short term gain to cover past year's short term loss?

[jimmyzzxhlh]

On last year's tax return I used my long term gain to cover short term losses, and the total capital gain was positive. On this year's return I made short term gain as well, but I have to pay a decent amount of taxes. Is it possible to amend last year's return so that I can use this year's short term gain to cover last year's short term loss, and then I'll pay the taxes for the long term gain from last year?

[AnnetteB · Accepted solution]

No, the scenario you described is not possible.

Generally, gains and losses are added together for a particular tax year to determine your overall gain or loss for that year only.  You do not have any control over choosing which tax year to report a gain.  It is reported in the year the gain occurs.  If you have an overall loss, then you may be able to carry some of that loss over to the following tax year.  That is the only time that you can change the year in which a capital gain or loss is reported (by carrying it over).