topic Past Capital Loss not Used or Carried over in Deductions & credits

Past Capital Loss not Used or Carried over

siskothekid — Mon, 03 Aug 2020 18:43:18 GMT

Someone had a Capital Loss in 2011 due to a business in which they owned stock going out of business. They did not realize this was a tax loss at the time and so did not claim the capital loss on that year's tax return. Nor have they shown any carryover related to it. Is there anything they can still do at this point to get a tax deduction? Or are they out of luck as they say?

Re: Past Capital Loss not Used or Carried over

Anonymous_ — Mon, 03 Aug 2020 18:54:54 GMT

You should read the thread at the link below; it directly addresses your scenario.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-can-i-make-claim-capital-losses-incurred-in-2000-and-2008-now-in-2020/01/1702597#M55700

Re: Past Capital Loss not Used or Carried over

macuser_22 — Mon, 03 Aug 2020 18:59:44 GMT

Probably out of luck at this point unless the loss was large.

It must be reported in the tax year that the loss occurred and would offset any capital gains for that year and up to $3,000 of ordinary income. Any loss reaming would carried to the next tax year to be applied the same way. That continues each year to the present if loss remains. No year can be skipped of the loss would be forfeited.

Only tax years 2017-2019 can be amended to claim any remaining carry over. Assuming that that taxpayer had more than $3,000 of taxable income each year since 2011 and no capital earnings to claim, then unless the loss was more than (6 years X 3000=) $18,000 there would be nothing reaming to deduct now. If the loss was more then $18,000 then there is a possibility that after applying the loss to mock amended 2011-2016 tax returns they might be some remaining loss to carry to 2017 (and later years) for a refund.