Capital Loss Carryover - First Time Claim

[farms]

Hi,

This my first time filing capital loss in my 2023 tax filing.  I have a net loss of $10k (stock) in 2022.  My question is can I claim that $3,000 deductible next year filing instead of this year since I didn't make very much in 2023 (taxable income)?  In other words, can I skip the $3,000 deductible this year filing and claim it starting next year?

Thanks.

[Hal_Al]

Q.  My question is can I claim that $3,000 deductible next year filing instead of this year since I didn't make very much in 2023 (taxable income)?  In other words, can I skip the $3,000 deductible this year filing and claim it starting next year?

A. Simple answer: No.

You MUST enter the capital loss carry over, from 2022, on your 2023 tax return. If your income is low enough, it may work out that you do not use up the entire $3000 loss entered on the 2023 return.

Basically, you are allowed to use your standard or itemized deductions to reduce your taxable income before having to use your capital loss.

Technically, if your standard (or itemized) deduction is greater than your AGI, without  the capital loss, then all your capital loss is carried forward.

TurboTax will do the calculations and prepare a capital loss carry forward amount to 2024. 

[farms]

Thank you for your response.

I have no capital loss carry over in 2022.  2023 was the year I lost money in the stock market.  So, I am claim the $3,000 deductible in this year tax filing for the first time.  However, since my personal income is just around $5K for 2023, it makes little sense to claim the $3,000 deductible in this year tax filing.  Perhaps, I thought it would be wise to claim the deductible in next's year tax filing instead.

Would this work?

[Mike9241]

check  2022 carefully, you may have used $3000 that year leaving only $7000 to carryforward to 2023

[Hal_Al]

If your income is only $5000, none of your $3000caoital loss will be used on the 2023 return (but you do have to enter the stock sale/loss). The whole $10,000 will carry forward to 2024.  

This assumes your are not a dependent or your $5000 income is earned income (from working). Dependents  get a reduced standard deduction.