Capital Loss Carryover from 2020

[lilly54]

TurboTax is asking for items from my capital loss carryover for 2020 although I transferred my 2020 taxes through TurboTax. I've put in the Federal ones requested, which ask for specific lines. Then it says find the one on my CA 504 (I am a CA full time resident) and put it in. What line?

[JohnW152 · Accepted solution]

It's not actually reported on a line in your 2020 return.

The 2020 Capital Loss Carryover to 2021 is computed using the California Capital Loss Carryover Worksheet in the 2020 Instructions for California Schedule D (540). 

You compute your carryover to 2021 by calculating the:

1. Loss from Schedule D (540), line 11, stated as a positive number.
2. Amount from Form 540, line 17.
3. Amount from Form 540, line 18.
4. Subtract line 3 from line 2. If less than zero, enter as a negative amount.
5. Combine line 1 and line 4. If less than zero, enter -0-.
6. Loss from Schedule D (540), line 8.
7. Enter the smaller of line 1 or line 5.
8. Subtract line 7 from line 6. This is your capital loss carryover to 2021.

[lilly54]

Thanks. So even if Schedule D (540), line 11 is a positive number, I need to fill all this out right? I've done it but that seems confusing.

[PatriciaV]

Yes, follow the instructions from Expert JohnW152. This will result in a correct carryover calculation.

[lilly54]

Here is a variant on this. TT is asking for my QBI Passive Op Loss from 2020 and 2019. Where do I find these on my taxes? Somewhere in the Schedule E worksheet? Was there a prompt for this somewhere (it's coming up in the final error check) with a line number?

[lilly54]

Is the answer to my question, Form 8995, line 2? The Form 8995 which TT filed out itself in 2020 and 2019 and was imported to TT 2021 successfully?

[JamesG1]

Qualified business loss carryforward is reported on line 3 of IRS Form 8995.

View the IRS Form 8995 in your tax return at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

@lilly54

[lilly54]

Form 8895, Line 3 is entitled, "Qualified business net (loss) carryover from the prior year." So isn't that the carryover from the prior year? So if I want 2019's carryover, that's what will be on my 2020, Form 8895, line 3.  Correct?

If I want the QBI Loss Carryover for 2020 (which is what TT 2021 is asking for), is it TT 2020, Form 8895, line 2 or line 3? Line 3 seems to be the prior year's (2019) carryover. No?

[Priller]

Thank you for this most excellent post JohnW152.

After reading your post, I feel more comfortable with my response(s) regarding 2020 Capital Loss Carryovers from 2020 (both Federal and CA).

There was another user, GeorgeM777, who provided a very useful response as well. However, I believe he made a slight error when he indicated the amount to be used as a Carryover because he said 2022 instead of 2021.

I tried following up with him but he eventually stopped responding.

FYI, I posted my inquiry as "2020 Federal Tax / 2020 Capital Loss Carryover & California Capital Loss Carryover" under the Deductions & Credit Topic of the Turbotax Community - Should have probably posted it under Income instead?

Anyway, would it be possible for you to take a look at my post(s) and the Expert member reponse(s) to see if I'm on the right track?

Thank you