2020: Loss from K-1 Schedule D -3,000 used. 2021: No federal tax liability -3,000 not used. 2022: -3 000 not used. No capital gains. Tax owed 2,000. Amend?

[Medicineman]

Please help.  Only used -3000 .  There is a Capital Loss Carryforward Worksheet showing 12,395 carryforward to 2023. The 2020 loss was 21,395. Since I have a capital gain in 2023, I need to correct all.  Products used: 2020 Turbo Tax Online, 2021 Turbo Tax Online Premier Assist and Review and 2022 Turbo Tax Deluxe Desktop.  Help would be great.  

[Mike9241]

if you had a capital loss of $21395 in 2020 $300o of tat was used in each year 2020,2021,2022 so 12395 c/f would be right for 2023.

the exception would be if with that loss you had negative AGI for one or more of those years, then depending on how negative some or all of the loss wouldn't be used. 

included is the worksheet to figure the CLCO from 2020 to 2021 on page D-11

https://www.irs.gov/pub/irs-prior/i1040sd--2021.pdf 

[Medicineman]

 This is Medicineman again. Your answering so soon is really helpful.   I will review all the information you gave me. Another thing that puzzles me is this. There was no Schedule D or anything at all showing the- 3,000 on the 2021 and 2022 tax returns.  Nothing was subtracted from income to compute the total income like the first year for 2020. Does the Schedule D not need to be sent in with the tax return every year? Is this something that the IRS just knows from the previous tax return and reduces it even if it is not used?  Sorry to seem so dense. Thanks again!

[BillM223 · Accepted solution]

Did the -$3,000 not appear on line 7 (with a checkmark in the box) on the 2021 1040, and ditto with the 2022 1040? This is how the $3,000 reduces your income, and you are expected to keep track of the carryover since there is no need for a Schedule D.

If line 7 was not used in either year, then there must have been something else, like your AGI being too low to allow you to use the carryover.

[Medicineman]

Thanks .  Maybe that is it.  The real "carryover" would be $18,395 then? The original $21,395 - 3,000 shown

in item 7 on the return in 2020 and not in 2021 or 2022..  I have a capital gain this year for 2023 and I must know the correct amount in order to pay the correct amount I will owe.   I'm interested in an actual review of what really occurred with an expert reviewing the actual returns before I start my 2023 return. I have not seen any option in Turbo Tax to do that.  Is there any such thing in Turbo Tax?

[DianeW777 · Accepted solution]

As indicated by Mike9241, an exception occurs if with that loss you had negative adjusted gross income (AGI) for one or more of those years, then depending on how much to the negative some or all of the loss wouldn't be used.  In this situation, you would be allowed to carryforward some or all of the $3,000 for such a year. 

The link provided does have a worksheet you can use to be sure of your carryforward.  The IRS would have the worksheets for each year.

• 2021 Schedule D Instructions, page D-11
• 2022 Instruction 1040 (Schedule D), page D-11

If you choose, you can begin using TurboTax Live for a review because it's necessary for the 2023 tax return.

• How do I get TurboTax Live?

@Medicineman 

[Medicineman]

Thank you so much for each of the answers. I will go over all of them and complete the worksheets provided. The Turbo Tax Live for a review sounds very helpful too. I appreciate the time you all gave to completely answer my questions.