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capital loss carryover when changing filing status

mikeTT220 — Wed, 26 Feb 2020 23:30:50 GMT

Last year we filed jointly. This year separately. We had a capital loss carryover. Can I apply it however I want between our two returns? Obviously, I would like to apply it to the person who had the capital gain.

To put some example numbers to it, say our carryover loss is -10. Person A has a gain of 20, person B a gain of 2. I would like to apply the entire loss carryover to person A. Possible?

Re: capital loss carryover when changing filing status

GCIR — Wed, 26 Feb 2020 23:43:35 GMT

The loss follows the person who incurred it. Also, the limit to offset other income drops to 1500 for married filing separately Check out IRS Pub 550

Re: capital loss carryover when changing filing status

MinhT1 — Wed, 26 Feb 2020 23:49:02 GMT

No, you cannot choose.

When you file jointly, you can deduct up to $3,000 of capital loss carried over. If you file Married filing Separately, each spouse can only deduct up to $1,500 of capital loss carried over.