can a 2018 short term capital loss carryover not to be used to offset long term capital gain in 2019?

[npbuddy]

I am filing 2019 tax year using Turbo-tax software. Could someone help me with a question on the short-term capital loss?

I have $20k short-term capital loss carryover from 2018 (tax year). In 2019 (tax year), I have $10k long-term capital gain (no short-term capital gain/loss).  I am in a high tax bracket (say 35%) in 2019.

The standard approach is to reduce the carried-over $20k  short-term capital loss to

$20k - $10k (offset long-term gain in 2019) - $3k (deduction in 2019) = $7k,

and then carry the short-term capital loss of $7k into 2020 (next tax year).

Since I am in a high tax bracket (say 35%), is it possible I take an alternative approach in filing 2019 tax?

1. Pay long-term capital gain tax of 15% to the $10k long-term capital gain (not to offset it by carry-over loss)

2. Deduct $3k from the carried-over short-term capital loss from the total income in 2019

3. Carry the remaining $20k-$3k = $17k short-term capital loss into 2020

Any help is appreciated!

[tagteam]

"can a 2018 short term capital loss carryover not to be used to offset long term capital gain in 2019?"

No, it cannot per Section 1001(c) of the Internal Revenue Code.

[rjs · Accepted solution]

You have no choices about how a capital loss carryover is used. The calculations are fixed by the tax law. It's all automatic. There are no options.

[npbuddy]

Thank you! It makes sense.