topic Capital Loss Carryover Application in Get your taxes done using TurboTax

Capital Loss Carryover Application

freddytax — Thu, 23 Apr 2026 11:19:53 GMT

I have a capital loss carryover that I would like to apply to a capital gain. Does TT automatically apply my carryover to income before a capital gain? I don't mind TT doing it this way, I just want to make sure that when I sell the equity the carryover can cover the gain.

Re: Capital Loss Carryover Application

AnnetteB6 — Thu, 23 Apr 2026 11:32:31 GMT

If you have used TurboTax for the returns, then the carryover loss will be automatically brought to the following year and applied.

Otherwise, use the information in the following TurboTax help article to enter the capital loss carryover:

How do I enter my capital loss carryover?

Re: Capital Loss Carryover Application

mesquitebean — Thu, 23 Apr 2026 11:50:40 GMT

@freddytax asked: "Does TT automatically apply my carryover to income before a capital gain?"

If you are asking if the capital loss carryover is applied to ordinary income first, that's not the way it works. TurboTax applies the carryover loss amount first to other capital gains before any excess net loss goes to offset ordinary income, which is limited up to $3,000 against ordinary income ($1500 if married filing separately.) See this FAQ and video:

FAQ: What is a capital loss carryover?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-and-deductions/capital-loss-carryover

Re: Capital Loss Carryover Application

freddytax — Thu, 23 Apr 2026 14:28:00 GMT

Thank you, exactly what I was looking for!!

Re: Capital Loss Carryover Application

freddytax — Thu, 23 Apr 2026 18:48:38 GMT

Got it, thank you!!