topic Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it over to next year? in Investors & landlords

Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it over to next year?

hjpage_1 — Tue, 03 Feb 2026 11:42:05 GMT

Re: Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it over to next year?

DoninGA — Tue, 11 Feb 2025 19:53:47 GMT

No. The capital loss carryover must be used each tax year until it is completely used up.

Re: Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it over to next year?

VolvoGirl — Tue, 11 Feb 2025 19:55:39 GMT

You have to report the carryover every year until it's used up. You can't skip a year. Even if you don't report it on your return you have to reduce it by the 3,000 (1,500 MFS) when you carry it over to next year. You can't choose when to use it.

But if you have a negative AGI or negative taxable income it will show up on 1040 BUT it won't reduce the carryover to the next year.

Re: Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it ...

MayaD — Tue, 11 Feb 2025 20:01:28 GMT

No, the IRS does not allow it.

You can use a capital loss to offset ordinary income up to $3,000 per year If you don't have capital gains to offset the loss. If your net capital loss is more than the yearly limit, you can carry the loss to next year's return.

irs.gov

Re: Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it over to next year?

JazzAlternative — Fri, 11 Apr 2025 14:08:38 GMT

"BUT 'it 'won't reduce the carryover to the next year." Please clarify what you mean by 'it'. Are you saying that no matter what, whether you need it or not, you have to fill out a schedule D and reduce your carryover by 3000 every year till it is used up?

Re: Do I have to use my capital loss this year if I don't think it is helping me? Can I carry it ...

Vanessa A — Fri, 11 Apr 2025 14:11:46 GMT

Yes. No matter what, even if you do not need it or want it, you need to include it on your carryover until it is used up. If you do not have gains to offset, the amount is not reduced, but it must be carried over.