2036969
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ashturbo
New Member

What/How do I need to file to spread an investment tax loss across multiple tax years?

I sold stock at a great loss in 2020.  The stock was in an ordinary investment account (NOT IRA, etc).  I know there is a way to do this but need a clue.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
ColeenD3
Expert Alumni

What/How do I need to file to spread an investment tax loss across multiple tax years?

Each tax year you can only 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. Your losses carry forward until they are used up.

 

Limit on the Deduction and Carryover of Losses

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 21 of Schedule D (Form 1040). Claim the loss on line 6 of your Form 1040. If your net capital loss is more than this limit, you can carry the loss forward to later years. You may use the Capital Loss Carryover Worksheet found in Publication 550, Investment Income and Expenses to figure the amount you can carry forward.

 

.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question