topic Deferred losses in Deductions & credits

Deferred losses

hollcass — Sat, 08 Mar 2025 11:10:34 GMT

I have $30k in realized capital gains, but $90,000 in deferred losses….all from very active option trading. Does that mean I actually lost $60,000 but have to claim $30k in gains?

Re: Deferred losses

DianeW777 — Sat, 08 Mar 2025 16:03:22 GMT

Yes. You will claim your gains which will offset your deferred losses resulting in a net loss of $60,000. This result will provide a $3,000 loss allowed against other income with the remainder carrying forward to 2025.

Each year you will net your gains and losses to determine the overall result. If you have losses in excess of your gains, then the maximum allowed in one year is $3,000. The balance will be carried forward until used up through gains in following years or continued carryforward of your losses to be used against other income.

Enter the information in TurboTax by using the steps below.

Open your TurboTax Online return:

Select Tax Home on the left panel > Select any Income category or Pick up where you left off
Select Tax Tools > Tools > Select Topic Search > Type 1099b > Select GO (should be landed on 1099b)
Select Add Investments if your 1099-B is not yet present in your list
Continue to follow the prompts to enter the information yourself

Open your return in TurboTax Desktop:

Select Personal Income > Scroll to Investment Income > Select Stocks Cryptocurrency, Mutual Funds, Bonds, Other
Start or Update > Continue to follow the prompts to enter your 1099-B details

The sale of any investment is required to be included with your tax return, gain or loss. Information from the link below may be helpful

Re: Deferred losses

hollcass — Sat, 08 Mar 2025 16:13:03 GMT

so my Etrade document shows realized gains at $34k with $90k in deferred losses. Are you saying my carryover loss for next year will be $56k and TurboTax will have that info in the investments section when I am done with my tax preparation?

Re: Deferred losses

hollcass — Tue, 11 Mar 2025 16:05:33 GMT

So after I enter all my trades, the deferred losses will be added to my carryover losses less the $3000 deduction for losses. Is that correct?

Greg

Re: Deferred losses

Vanessa A — Tue, 11 Mar 2025 16:21:03 GMT

Yes. After you enter all of your trades, your losses that you cannot claim this year will be added to your carry over losses minus the $3,000 that will be used this year to offset your other income. Then next year, if you are using the same account (or TurboTax Desktop) your losses will be carried over by TurboTax to your next years return.