What does the long term capital loss carryover mean?

[VolvoGirl · Accepted solution]

If you have a net loss for the year (after you subtract the losses from your gains) you can only deduct up to 3,000 (1,500 MFS) per year. The rest of the loss you have to carry over each year until it is used up. You can't skip a year. If you use Turbo Tax it will automatically carry over the loss for you.

Then in the future if you have a lot of gains you can use up more of the carryover loss.
See IRS Pub 550 https://www.irs.gov/pub/irs-pdf/p550.pdf

If you use Turbo Tax next year the Capital Loss Carryover will transfer over. Or you will have to manually enter the amount.

On the income page The 2024 column shows the carryover to 2025 (not your current loss for 2024). 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.