I must be confused about the way that Turbo Tax is computing/displaying my Capital Gains for 2021.
I have a -$20,000 (rounded) Capital loss carryover from 2020, of which I understand -$3000 can be applied on my 2021 return. From my 1099B, I have $3,000 in Capital Gains for 2021. So it seems my net Capital Gain to be reported for 2021 should be zero, and my remaining Capital Loss Carryover should be -$17,000, correct?
Turbo Tax is showing a "Capital Loss Used in 2021" = $6,000, (shown as a positive (not negative) amount) and loss carried forward to 2022 of -$14,000.
Can anyone provide a clarification?
Thank you.
You can use $3,000 of your $20,000 carryforward loss to offset your 2021 $3,000 gain. Then you can use another $3,000 of your $20,000 loss to offset all of your other income (which would leave a $14,000 carryforward to 2022).
OK thanks. What has me confused is that Turbo Tax (I thought) always indicates a Capital Loss as a negative value (i.e. -$20,000 Capital Loss Carryover), but the $6,000 Capital Loss calculated for 2022 is shown as a positive number, so I was thinking it was actually a Capital Gain instead of a Capital Loss.