Skipping a year of capital loss carryover

[mannye]

I have a capital loss carried over from last year (2022) For tax planning purposes, I do not wish to carryover that loss to offset capital gains in the current year (2023), but instead carry it forward to use in future tax years  where my tax exposure will be higher.

How do I accomplish this?  The only way I could trigger Turbotax to perform this task was by zeroing out the data in the 2022 Capital Loss Information Smart worksheet and manually populating the existing data in lines 12 and 13 of the "2022" column into the "2023" column of the 2023 Federal Carryover Worksheet.

[Bsch4477 · Accepted solution]

You are not allowed to skip taking the capital loss carryover. 

[mannye]

Thanks for your reply. The attached February  2024 article in INVESTOPEDIA ( see section under Pros and Cons) clearly states that one can indeed choose when to use the carryover to suit their particular tax situation.

https://www.investopedia.com/terms/c/capital-loss-carryover.asp#toc-advantages-and-disadvantages-of-...

[ee-ea]

@mannye 

@Bsch4477 

When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year.

IRS pub 550

https://www.irs.gov/publications/p550#en_US_2023_publink100010731

[mannye]

Thank you so much for elaborating for me.  I had read Publication 550 a couple of times but had not picked up on their instruction that the loss carryover must be included into the following year, and then subsequent years if not fully utilized in the first year of carryover.

I appreciate all the help you provided me and it prevented me from making a serious filing error.