Long term capital loss carryover

[mrdavie]

I utilize TurboTax from year to year and download 1099's directly into TurboTax from my investment advisor. Will TurboTax determine if there is a long term capital loss carryover or otherwise adjust income based on investment losses? Or, do I need to abandon TurboTax and hire a CPA?

[VolvoGirl]

Yes.  Do you have a carryover from 2018?  Or just more looses than gains for 2019?

You get to first offset the loss against any gains you have each year so that can use more of it up.  Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year.  Turbo Tax does all the calculations for you.  Just enter the prior year carryover amount.

If you transferred your prior return it should be already filled in.

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click the Start or Update button

It's now on the new Schedule 1 line 13 which goes to 1040 line 6.

What is a Capital Loss

https://ttlc.intuit.com/community/investments/help/what-is-a-capital-gain-or-loss/00/25974

[mrdavie]

Thanks! My question applies to 2020. 

[VolvoGirl]

For next year....

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

On the income page The 2019 column shows the carryover to 2020 (not your current loss for 2019).  Schedule D doesn't actually show the carryover amount. 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 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.

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.

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.