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Dp0066dp
Level 1

Long Term capital loss carryover 2019

In 2019 I sold 7 properties at a long term loss of -49,800.00, Line 4 of schedule 1. Line 5 of schedule 1 Real estate profits of 39,936 added together = –9,864.  Is there any way I can take part of the -49,800 and  treat  it as a long term Capital loss  carryforward to 2020.

4 Replies
DianeC958
Expert Alumni

Long Term capital loss carryover 2019

No, if you have other income the loss can offset in 2019, the full amount of the loss is going to be taken in 2019.  There is no a way to carry it forward unless it creates a Net Operating Loss on your return.

 

Selling Rental Real Estate at a Loss

 

@Dp0066dp

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BenT9
Level 3

Long Term capital loss carryover 2019

The long term capital loss can be used to offset capital gains but you real estate income (from rentals I assume - not sales) is ordinary income.  If you don't have capital gains sufficient to offset the loss (it appears you haven't any capital gains) you can use the loss to offset $3,000 of ordinary income. The balance gets carried over and can be used to offset future capital gains or $3,000 a year until it is all used up.  First it offsets capital gains and the remainder offsets ordinary income to the tune of $3,000 per year.  If you have any capital assets that have appreciated in value and if sold would generate capital gains.  Look at the possibility of selling them to use up the loss, especially if you planned on selling them in the future.  You can buy them back again. 

BenT9
Level 3

Long Term capital loss carryover 2019

You stated you had a long term capital loss and my answer is predicated on that.  You might have classified it wrong and if so Diane's answer is appropriate.

fernandezm6452
New Member

Long Term capital loss carryover 2019

Hi,

I have a massive Long Term Capital Loss carryover ($850K) from 2000, during dot com.   I am trying to use up carryover faster than the $3000 a year.  Most of the gains are short term for this year.

If my short term gain is $20K for this year, where in TurboTax do I enter the $20K, and where do I see the reduction of the Capital Loss Carry Over amount ($850K).   The carryover should reduce to $830K, right?

 

Thank you

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