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Steve1002
New Member

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

my capital loss carry forward is not adjusted downwards by $3000....the next year the amount remains the same.  That does not seem right to me, for example the new carry forward should be $3000 less than the year before, but I seem this number over and over each year.
6 Replies
NCperson
Level 15

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

are you looking on lines 8 and 13 of the capital loss carry over worksheet??????

Critter-3
Level 15

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

If your income is low enough then the capital loss is not reduced ... review the loss carryover worksheet to see how this is calculated.   SO  although you must enter the loss on your tax return the amount of the loss may not be reduced.  

VolvoGirl
Level 15

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

If you have a negative AGI or negative taxable income it will show up on 1040  BUT it won't reduce the carryover to the next year.

 

If you have a negative AGI or negative taxable income read Pub 550 page 66 and 67 on Figuring your Carryover.  So even though it shows it on 1040 it doesn't reduce the carryover to the next year.

http://www.irs.gov/pub/irs-pdf/p550.pdf

Steve1002
New Member

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

Yes, appreciate your answer I now understand and both Volvo Girl and Criter3 answered this for me....thank you all for responding and answering my question.

Steve1002
New Member

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

Thank you and the others, too, for answering my question!

Steve1002
New Member

Why does turbo tax show not reduce the amount of my carryover loss each year? It remains the same...it is reduced when I look at my tax form each year.

Thank you for your answer, I understand now

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