Capital Gain and Losses

[bbeckham23]

In 2022 I had a Capital Gain of $29,000 and was taxed heavily.  I have a $60,000 net loss in 2023.  Is it possible to Amend 2022 takes to use some of the $60,000 net loss toward that 2022 gain or is it even worth it? This was all Stock Market / Day Trading.  

[MayaD]

You actually can't carryback your losses in the US. 

What is a capital loss carryover?

Edited[02/05/2024, 09:41 AM PST]

@bbeckham23

[bbeckham23]

I clicked on Download Forms and its for Canada.  I am in the US.  

[MonikaK1 · Accepted solution]

Your excess capital losses can only be carried forward to later years on your US tax return. Canada allows carryback of capital losses.

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D (Form 1040), Capital Gains and Losses. Claim the loss on line 7 of your Form 1040 or Form 1040-SR. If your net capital loss is more than this limit, you can carry the loss forward to later years. You may use the Capital Loss Carryover Worksheet found in Publication 550 or in the Instructions for Schedule D (Form 1040)PDF to figure the amount you can carry forward.

See this TurboTax help article for more information about capital loss carryovers.

[VolvoGirl]

Whew!  Thought I was going crazy about that carry Back post.  Never heard of that.  

If you have a net loss for the year (after you subtract the losses from your gains) you can deduct up to 3,000 (1,500 MFS) per year. The rest of the loss you have to carry over each year until it is used up. You can't skip a year. If you use Turbo Tax it will automatically carry over the loss for you.

Then in the future if you have a lot of gains you can use up more of the carryover loss.

See IRS Pub 550 https://www.irs.gov/pub/irs-pdf/p550.pdf