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ML2
New Member

How can I manually change the net short- & long-term capital loss carry fwd amounts (Sched D, lines 7 & 15)? TT applies $3k from Short term, I want to use long term 1st.

The totals and amounts are correct, it's just that TT seems to be applying the $3k carry forward loss amount from my short-term carry forward balance (Line 7 on Sched D) as opposed to the long-term capital loss carry forward (Line 15 on Sched D). I'd rather us the long term first. I can white it out, but I'd rather change it on the actual form.

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4 Replies

How can I manually change the net short- & long-term capital loss carry fwd amounts (Sched D, lines 7 & 15)? TT applies $3k from Short term, I want to use long term 1st.

It is required to use the short-term losses first.


From Publication 550:

Use short-term losses first.

When you figure your capital loss carryover, use your short-term capital losses first, even if you incurred them after a long-term capital loss. If you have not reached the limit on the capital loss deduction after using the short-term capital losses, use the long-term capital losses until you reach the limit.

https://www.irs.gov/publications/p550#en_US_2017_publink100010734

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf#page=11


MinhT
Expert Alumni

How can I manually change the net short- & long-term capital loss carry fwd amounts (Sched D, lines 7 & 15)? TT applies $3k from Short term, I want to use long term 1st.

Please see TaxGuyBill's answer below.



Edited 04/15/2019  |  3:17 PM

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ML2
New Member

How can I manually change the net short- & long-term capital loss carry fwd amounts (Sched D, lines 7 & 15)? TT applies $3k from Short term, I want to use long term 1st.

Not if you want to save your short-term losses for a future year in which perhaps I've made a bunch of short-term cap gains. In this way (only) short-term losses carry-forward are more valuable and should therefore be applied after long-term carry forward losses are applied. That's my analysis anyhow. (If I have zero short-term left, but $10k, say, in log-term left, I would not be able to apply them against a $10 short term gain.
MinhT
Expert Alumni

How can I manually change the net short- & long-term capital loss carry fwd amounts (Sched D, lines 7 & 15)? TT applies $3k from Short term, I want to use long term 1st.

Long term capital losses can also be used to offset short-term capital gains.
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