Have long term capital loss that i'm working off. can i include this along with the standard $27000 deduction

Forum|Forum|5 years ago
March 3, 2021
3 replies
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have long term capital loss. can i use this loss and take the $27000 standard deduction

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Hal_Al

Level 15

Yes, the capital loss is in addition to your standard deduction.

You capital loss carry forward goes on Schedule D (lines 6 and/or line 14). There it combines with any gains or losses for this year. The net gain or loss goes on line 7 of form 1040. But, a net loss is limited to $3000. Any excess carries to next year.

Bsch4477

Level 15

Yes. The loss will be deducted from your income to a maximum of $3,000 after netting out any capital losses.

ToddL99

Level 13

@HalAl and @Bsch4477 were correct in how your long-term capital loss is treated. If your capital loss carry-over didn't transfer from your 2019 tax file, see How do I enter my capital loss carryover? for instructions.

Also, the largest standard deduction for 2020 is $24,800 (Married Filing Jointly or Qualifying Widow(er). There is an additional standard deduction of $1,300 for taxpayers who are over age 65 or blind. The amount of the additional standard deduction increases to $1,650 for taxpayers who are unmarried.