Can a capital loss carryover be used when no capital sales are involved in the current tax year?

[Curious1]

I have a capital carryover loss from the 2016 tax year. Can I use $3,000 of the remaining capital loss carryover for the 2017 tax year if I had no investment transactions (no liquidations) in 2017, i.e. can I use this loss against my ordinary income?

[MinhT · Accepted solution]

Yes, each tax year you can use $3,000 ($1,500 for married filing separately) of your capital loss carryover to offset ordinary income, even if you do not have other capital gains or losses in that year.

[NautiTbo]

Yes, until you've used up the carryover, with or without additional investment transactions that result in further losses.

[Frank_Zuccarini]

Hi.

Thank you for this very useful information, but I  need more help.

I am currently using TurboTaxe's Premier, on-line version.  TT imported my last year's (2018) information, where I did have realized capital gains, and dutifully received $3,000 against my gains.  Because I had no gains 2019, there is no capital loss carryover indicated on my Schedule D, Line 14.  I would like to use $3,000 of my loss carryover against my Ordinary Income, but my only income in 2019 was from Social Security or my IRA.

Can I use my Capital Loss Carryover, or have I now lost it?

If I can  use it, where will it show on TR's forms, and how do I enter it in the program if it has not been entered by the importation process?

Thank you for any help you can provide....................... Frank

[BarbaraW22]

If you have a capital loss carryover from 2018, you can use up to $3,000 of this loss against ordinary income. If you used TurboTax in 2018, the program should transfer this information to your 2019 tax return. To verify if this information was imported correctly, please follow these steps:

1. Click on Wages and Income at the top of the screen
2. Scroll down to Investment Income and click on Show More, 
3. Click on Start or Revisit next to Capital Loss Carryover
4. Compare the amounts reported to amounts from your 2018 tax return (Review your 2018 Schedule D and the 2018 Capital Loss Carryover Worksheet from your 2018 tax return to determine the carryover amounts)
5. Select Edit to make any corrections or enter your Capital Loss carryover if needed

To verify if the Capital Loss is correctly reported on your tax return, please follow these steps:

1. Click on "Tax Tools" from the menu on the left-hand side and then click on "Tools"
2. Click on "View Tax Summary"
3. Then click on "Preview my 1040" from the menu on the left-hand side
4. Scroll down to line 6 on page 1 of your Form 1040 and confirm the amount reported
5. To return to the program, click on "Back" from the menu on the left-hand side

@Frank_Zuccarini

[Frank_Zuccarini]

Thank-you Barbara, for your detailed explanation and instructions.

I was able to verify that Turbo-tax did NOT import my Loss Carry Over, for reasons I still don't understand, since it has previously always, year after year, imported to my new tax forms (minus $3,000, of course).  This year it did not.

But I was able to add it myself, and checking as you suggest, it is now on line 6 of my Form 1040.

Again, thanks for your help.  I sure appreciate it..................................... Frank