Bug in capital loss carryover?

[Njfiler18]

TurboTax 2019 transferred my data from 2018. For the capital loss carryover calculation, instead of taking line 10 from 2018 form 1040 to use as last year's taxable income, it picked up the sum of line 9 (qualified business income deduction) and line 10. The instructions on the screen clearly state that taxable income should only come from line 10, as do the instructions for the capital loss carryover worksheet currently posted on the IRS website. Since several other posts have previously reported the same problem, why hasn't TurboTax already responded and fixed this bug??? 

[Anonymous]

TT has more than a few bugs to fix.  

[galaxy2p]

The fix is incorrect.  It should use the formula to get the amount for line1 NOT the number directly from Form 1040 line 10.  Even though it works for most of people but it doesn't work for people whose last year deduction is greater than AGI.

The capital loss carryover worksheet said

"Enter the amount from your 2018 Form 1040, line 10. If a loss, enter as a negative amount..."

It shouldn't take the 2018 Form 1040 line 10 amount directly  to the capital loss carryover worksheet line 1.  Form 1040 line 10 amount is taxable income,   if it is < 0 , enter 0, therefore it is never a negative number.

It should use the formula to get the result of Form 1040 line 10 since AGI might be less than the deductions.  That means : AGI(line7) - Standard deduction(line8) - Business income deduction(line7) = Capital loss carryover worksheet line 1

My AGI is less than standard deduction in 2018.  My taxable income is 0 but my capital loss should be able to carryforward to 2019. (The carryforward to 2019 worksheet from Turbo Tax 2018 is correct though.)  However, at Turbo Tax 2019, the capital loss carryover worksheet line1 is 0 (it should be a negative number)  which is taken from Form1040 line10, so I don't have any capital loss carryover for 2019 any more!

Can you fix this soon?  Otherwise I need to file manually which is painful.  Thanks.

[galaxy2p]

a typo... the formula should be

AGI(line7) - Standard deduction(line8) - Business income deduction(line9) = Capital loss carryover worksheet line 1

[TerryA]

That was fixed in the March 18 update.

[galaxy2p]

As I said in my previous message, the fix is incorrect. Perhaps I should say it does fix the issue for most of the people but NOT  for everyone. It only fixed for those people whose amount of AGI >= (standard/itemized deduction + business deduction)  on Form 1040 line 10 is either 0 or positive amount. But NOT for people whose amount of AGI < (standard/itemized deduction + business deduction)  is negative. Using an example to illustrate the issue might be easier to understand.

From the above example, the middle column uses line 10 amount (which has been modified to $0) has no short term and long term capital loss carryover for 2019. The last column uses the raw data of line 10 has $503 short term and $2420 long term capital loss carryover for 2019.

For those people whose AGI is less than the deduction amount in 2018, the capital loss carryover for 2018 from previous year (2017) will not be used or will be used partial. So the unused capital loss should be able to carryforward to next year (2019)

As a result, it should use the formula to get the raw data for 2018 Form 1040 line 10, NOT the amount literally from line 10 for Capital Loss Carryover Worksheet line 1.

[fourteen]

@galaxy2p I agree.

I am running into this bug as well and started a new thread about it yesterday, before seeing this thread today.  My thread is Capital Loss Carryover bug and in it I quote IRS publication "2019 Instructions for Schedule D" how "Capital Loss Carryover Worksheet, line 1" should be calculated.  IRS publication "2019 Instructions for Schedule D", page D-12 states:

Enter the amount from your 2018 Form 1040, line 10, or your 2018 Form 1040-NR, line 41. If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses

A couple of weeks ago, TurboTax Deluxe 2019 did fill in a negative number on "Capital Loss Carryover Worksheet, line 1" but some recent updates to TurboTax Deluxe 2019 has introduced this bug, because it now incorrectly fills in 0 (when a negative number should be filled in.)