Why is my 2020 Capital Loss greater than $3000? I had a capital loss of $11264 in 2018, claimed -$3000 in 2018 and -$3000 in 2019, I expected to claim -$3000 for 2020.

sfeaser · ‎February 1, 2021

DJS · ‎February 1, 2021

$3000 is the most that can be deducted against ordinary income, but any amount can be deducted against realized capital gains that you may have.

Answers are correct to the best of my ability but do not constitute legal or tax advice.
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sfeaser · ‎February 3, 2021

DJS, are you saying that you can deduct more than $3000 of the carry over loss in a tax year if you had additional net positive capital gains in the current tax year?

JohnB5677 · ‎February 3, 2021

If you had a Capital gain during 2020, that gain would be covered by your carryover, and you would still get the -$3,000 on line 7 of your tax return.

Please look at Schedule D. You will see that your total carryover shows on line 6. It is adjusted down by the amount of net gain (allocated by long and short term gain) you had and it is posted to line 16. You will then see the -$3,000 will appear on line 21. This carries over to line 7 of your 1040.

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Why is my 2020 Capital Loss greater than $3000? I had a capital loss of $11264 in 2018, claimed -$3000 in 2018 and -$3000 in 2019, I expected to claim -$3000 for 2020.