Capital loss carry over

[bak1209]

I had a substantial loss on stocks, $9,000.00, last year (2019).  The allowable $3,000.00 ($2,999.00) loss was taken by Turbo tax on my taxes this year. When taxes are completed in 2021 for the year 2020, will $2,999.00 from  the stock loss in 2019, Capital Carry Over Loss, be automatically be calculated and entered by Turbo Tax when taxes are completed in 2021?

Is this loss entered automatically by Turbo Tax or does a $2,999.00 carry over loss need to be entered by me in 2021?   

[DianeC958 · Accepted solution]

No, the loss does not need to be entered into TurboTax by you.  As long as you use TurboTax each year and update from the previous year, your Capital Loss will carry forward and the allowable amount will be deducted.

[bak1209]

Thank you

[barjatya]

Hello,

I am seeing an issue in Capital Loss Carryover that is over 40 days old and others seem to be having it.

I have been using TurboTax online for 9 years!

Last year (2018) I had $8055 of Capital loss. I could only deduct $3000. Thus I should get $5055 as Capital Loss Carryover in to 2019. TurboTax auto imports that info and the website does say I should have $5055:

"2019 Capital Loss Carryover

We hope this $5,055.00 tax breaks gives you a boost."

But then shows $0 in the 2019 column!?! i.e. there is absolutely no reduction in my taxable income.

It seems to be the same problem as several others have posted about. They solved it by either downloading TurboTax to Desktop, or by switching to H&R Block. I really don't want to download to desktop.

Any thoughts?

Do I also have to go to H&R Block?

I would love to continue with TurboTax as I have used them for 9 years!

Thanks for any help...

[DaveF1006]

if you had capital gains this year that were in excess of the $5055 carryover amount, the entire amount would be used this year to offset those capital gains.

[barjatya]

Yes... but it does not seem to be doing that.

All my $9K of gains are still showing up as $9K of gains... i.e. my taxable gain is not being reduced by $5055.

[DaveF1006]

 Perhaps turbo Tax did not report the carryover amount in your tax return. Try this.

1. go to federal>income and expenses
2. investment income>Capital Loss Carryover>start
3. Did you have investment losses you couldn't claim in 2018? Yes
4. Look on the next screen. if this is blank, you will need to enter the information as a negative number. You may need to look at last year's Schedule D to separate the long term losses form the short term.

[Viettanker70]

I sold inherited house in 2012 and took a large loss.  We have been taking loss every year.  our computer crashed and we lost previous years turbo tax records.  I have hard copy of the 2012 schedule D.  We do not have paper backup for 2018. What do we do for 2019 tax year? 

[Viettanker70]

In the turbo tax for capital loss there are two blocks one says amount and the ant.  What do I put in each block?  

[19Frisco99]

This past year I have a $19000 capital loss on a piece of property I had invested in, 
How should I report this loss'
Can I claim more than the $3000 I take each year

I know I can carry over any sum I do not use.

I have more carry over loss funds than I will ever use (I am 90 years old )

[Mike9241]

unless the tax laws change, you can only take a $3,000 net capital loss every year. TT will limit you and figure your carryover. 

[bak1209]

Mike9241,

Deduction of $3,000.00 was taken automatically by TT for year 2019. Note, total loss was $8,000.00 in 2019.

Will an additional $3,000.00 be taken automatically for 2020 by TT or does that $3,000.00 need to be entered

by me? 

[VolvoGirl]

If you transferred your prior return it should be already filled in.

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click the Start or Update button

And it should be the remaining 5,000 that was carried over from 2019.  (8,000-3,000).  You get to first offset the loss against any gains you have each year so that can use more of it up.  Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year.  Turbo Tax does all the calculations for you.  Just enter the prior year carryover amount.

[Vishnu47]

My 2019 Tax file got lost, so I could not transfer last year's information for this year's taxes. Last year I had 78991 loss to be carried over to 2020 on Schedule D, line 15.  However when I entered the information for this year's taxes, I could not find a way to enter "carry forward Capital loss" .  Where do you enter previous year's loss? Since I had to file the taxes, is there a way to make adjustment in 2021 taxes ?

Also 2020 Turbotax, disappointed me in tax form review, previous year, it would catch all minor or major errors, this year my tax form accepted by Turbotax was rejected by Fed and State for duplicate entries and 1099R.  It does not show what forms it downloaded from the bank as I have to enter some by hand and some were downloaded where it could.  -  Disappointing.

[VolvoGirl]

So you didn't enter the carryover loss from 2019?  And you already filed?  You will have to amend your 2020 return to add it and to find out the right carryover to 2021.    If it doesn't change your 2020 return you don't have to file the amended return.  Did you have a current 2020 gain or loss on 1040 line 7?

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click Start or Revisit

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.

This is from the IRS Pub 550 page 66 middle column Capital Loss Carryover:
"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