How best to deal with large capital loss carryover

[vabhijit]

I have a significantly large capital loss carryover from a prior tax year. I understand that I can utilize only $3000/$1500 of this loss, to offset capital gains in a given year. Is there an alternate way to leverage the capital loss carryover? 

[VolvoGirl · Accepted solution]

Actually you ca use more of it.  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.

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

[Bsch4477]

No magic.  Your loss will be applied toward any capital gain and then $3,000  ($1,500 if MFS) will be subtracted from your regular income and rest carried over. You must use the carry over loss each year even if you have no income or else you will lose the loss.