Two years of losses

[futurestrader39]

Since I technically did not make any money in 2019 but had a max loss(futures market) of 3k I could not claim this, fast forward to 2020 I had another max loss that i can claim of 3k. How do I claim both losses? I know I can claim past years losses up to 3-5 years. What is the best way to do this. 

[middlepayne]

You can carry over 100% of your previous years losses. 2020 Schedule D instructions has the Capital Loss Carryover Worksheet. Complete that, which will allow you to enter your short-term and long-term capital loss carryover amounts on Lines 6 and 14 of your 2020 Schedule D. Unfortunately, I believe not using the $3,000 maximum loss last year does not mean you get to add it to the $3,000 maximum loss this year - Line 21 on your schedule D will explain you still only get to use a $3,000 maximum loss this year. I am not aware of an allowance for claiming a previous year's maximum loss in the current year.

BTW, if you use the Schedule D Capital Loss Carryover Worksheet and enter the total losses on your Schedule D each year, it gives you a really easy starting point to keep your loss total rolling forward. If you have $10,000 of losses, then sell equities to realize some gains to "use up" that loss - and you will have no net gain to have to pay taxes on.

[MinhT1]

Futures market losses are treated as 60% long term and 40% short term capital losses.

You can only deduct each year $3,000 ($1,500 if married filing separately) from your ordinary income. But the excess loss is carried forward to future years.

You should report your 2020 losses on your 2020 tax return.

To claim 2019 losses, you need to amend your 2019 tax return.

Please read this TurboTax Help topic on how to amend your 2019 tax return.

[JohnB5677]

To report your carryover Capital Losses you should go to: 

1. Income and Expenses

2. Investment Income

   1099-B or broker statements

3. Capital Loss Carryover

4. Did you have investment losses you couldn't claim in 2019?

5. Great, we'll guide you, starting with some info from your 2019 tax return

6. You probably don't, but we have to ask—do you have different carryover amounts for AMT?

7. One last thing—what was your AMT income?

8. Based on the info you entered, we've calculated your capital loss carryover amounts.

The form this will be recorded on id the Capital Loss Carryforward Worksheet

Capital losses are limited to offsetting current year Capital Gain plus $3,000. 

[futurestrader39]

where is the correct spot to enter in this years loss? I used the 1099 b under invest income and when I enter in the the loss under total proceeds nothing changes to my overall amount owed to the FED 

the 1099 b shows all the boxes I need to enter but cannot figure out how to do so on turbo tax

[JohnB5677]

You don't have to do anything.  This years loss will be posted to your tax return negating any gains and taking an additional $3,000 as a loss. 

Any additional loss will be automatically included and carried forward to your 2021 tax return. This will be on the form Capital Loss Carryforward Worksheet.

@futurestrader39

[futurestrader39]

I cant combine 3 years of losses so I will do this years where is the correct spot for this?

Thanks

[VolvoGirl]

To enter the prior year losses even if you didn't file a return I think you still enter them as a Capital Loss Carryover.

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

[futurestrader39]

this is slightly different from the original question, trying not to open another thread on a similar topic. 

I am looking for where to file for this years loss

[VolvoGirl]

Didn't you see it under

Federal Taxes Tab or Personal (Home & Business)

Wages & Income

Then scroll down to Investment Income,

Then Stocks, Mutual Funds, Bonds, Other - click Start or Update

[VolvoGirl]

You might not see a change in your tax if you already had the max loss listed on your return.

If you have a net loss for the year you can only deduct 3,000 (1,500 MFS) max on your tax return.  The rest you have to carryover to next year.  You have to report the carryover every year until it's used up.  You can't skip a year.  

[futurestrader39]

and im assuming this loss goes in the total proceeds box correct?

[VolvoGirl]

No.  I don't know or understand your specific situation but you enter the Cost and Sales price and Turbo Tax figures the gain or loss.  Proceeds is not your gain or loss.  

[futurestrader39]

I am trying to figure out where to enter in my loss for 2020 I do not have any gains I only have losses there is only 1 place to enter anything in and this is under the proceeds box.

[VolvoGirl]

You don't enter gains or losses.  You enter the individual sales.  Date Sold, Cost, Sales Price.  That's all I know about entering investments.   Someone else will have to give you more specific steps.