You may open the capital gains and losses section and follow the interview prompts.
A capital gain is when you sell an asset, such as stock or real estate, and the asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
A capital loss is when you sell the asset for less than its cost basis.
Capital losses from investments can be deducted, but not those from personal-use assets, such as your home or personal vehicle.
You may have received an information return from a brokerage, Form 1099-B, if you sold stock, and Form 1099-S if you sold real estate. TurboTax provides interview questions and entry screens to lead you through the process of reporting them.
Your total capital gains for the year minus your total capital losses result in either a net capital gain or a net capital loss.
- Short term capital gains (gains on assets held one year or less) are taxed as ordinary income.
- Long term capital gains (gains on assets held more than one year) are taxed at a more favorable rate than ordinary income.
- Net losses are deductible, but only up to a maximum of $3,000 ($1,500 if married filing separately). Any capital losses you couldn't deduct this year can be carried forward and deducted on future tax returns. This is called a capital loss carryover.
See this TurboTax help article and this TurboTax tips article for more information.
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