Hi,
I know that we can only deduct $3,000 capital loss per year. I've lost over $5,000 in stocks. How to the carry over work? Do I just report what I sold for a lost up $3,000, and report the $2,000 loss for next year?
Thanks,
Joe
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No. You enter all your real sales with the cost and sales price. Turbo Tax figures out the gain or loss and any carryover. If you are using the Online version you need to use Premier or Self Employed version to enter investments.
You should get a 1099B for sales.
Enter a 1099B under
Federal Taxes Tab (Personal for Home & Business)
Wages & Income
Then scroll down to Investment Income,
Then Stocks, Mutual Funds, Bonds, Other - click Start or Update
2019 Capital Gains and Losses on Schedule D go directly to 1040 line 6. And Schedule D doesn't actually show the carryover amount. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2. Line 16 will be your total loss and line 21 should be a max loss of 3,000. The difference between line 16 and 21 is the carryover loss for next year.
There will be a Capital Loss Carryover Worksheet showing the carryover from the prior year and the current amounts. Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.
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