Capital Loss Carry Forward

[jaxgab]

I'll probably have $0 capital gains and $0 capital losses during 2019.  I also have a 2018 capital loss carryforward valued at $ 10K.

I would prefer not to report any capital loss on my 2019 tax return (i.e. carry the entire capital loss carryforward to 2020) because my 2019 taxable income will be small either way and my tax will be $0 either way.  Do I have to claim a $3K capital loss on my 2019 return even I won't get any benefit from it?   

[VolvoGirl]

Sorry yes.  You can't skip a year.  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.

[VolvoGirl]

This is from the IRS Pub 550 page 66 middle column....

"When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year. "

Here is pub 550…  http://www.irs.gov/pub/irs-pdf/p550.pdf