Capital Loss Carryover and Modified Taxable Income calculation

[Jason999]

My 1040 return has Capital Loss Carryover deduction with maximum allowed of -$3000 every tax year.

I am now filing out a Worksheet 2 Pub 536 to calculate absorbed NOL in 2018. This worksheet calculates Modified Taxable Income.

My question is:
Do I need to add the $3000 carryover deduction to Taxable Income in Line 3, when calculating Modified Taxable Income using this Worksheet 2 Pub 536?

Line 3. says:
"Enter as positive number any net capital loss deduction" - Does this mean that I must enter the $3000 carryover? or does this apply only to current 2018 loss (not to carryovers from previous years).
Entering the $3000 wouldn't be good because it wastes $3000 from the NOL. Also, the $3000 was previously deducted on 1045 Schedule A-NOL form when I carried the NOL forward, so I would be deducting it from my NOL twice.

Thank you in advance.

[RobertG]

Yes, you have to include the $3,000 Capital Loss Carryover.  You still get the benefit of the carryover deduction on form 1040, line 6.

[DETAX1]

Is that the maximum that can be carried over for year 2022?

[DETAX1]

But is the maximum carry over $3000. or can I carry over more losses from prior years?

[DETAX1]

ant to know what the maximum nol loss that can be carried over from years past is. Is there still a cap of $3000. per year?

[AmyC]

There is an NOL limitation and annual limitation. Generally, $3,000 is the amount to write off each year as a passive loss.  

Reference: IRS Publication 536 Net Operating Losses (NOLs)  which states:

Annual losses limited for 2022.

Excess business losses for noncorporate taxpayers are limited for tax years 2021 through 2028. Generally, any disallowed loss is treated as an NOL carryover to later years. Also, excess business losses are now computed without regard to any deduction allowed under IRC section 172 or 199A and without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee. You can’t deduct net losses in excess of a threshold amount in the current year.

For 2022, excess means total (modified) business deductions over the sum of total gross business income plus $270,000 ($540,000 for joint returns). The excess is treated as an NOL to be carried forward (or carried back for farmer’s excess business losses). Further, when carryforwards can be used, they can only offset 80% of taxable income in future years. While the limitation for excess business loss applies to calculate the amount to deduct as an NOL in the loss year, the deduction is not limited to 80% of modified adjusted gross income in the previous (carryback) year(s). So the full amount of modified adjusted gross income in previous years is used to absorb the loss. See Excess Business Loss, later.

@DETAX1