So I was married when my ex and I filed our 2022 return. Together we had about $8000 long term capital loss and about $1600 short term capital gain in 2022. The allowable loss for us was $3000. Our taxable income in 2022 was about $150,000.
We divorced in 2023. Since I'm filing the 2023 return on my own, I was wondering what numbers I should enter in the capital loss carryover section.
It asks for 4 numbers (line 15 taxable income on 1040, line 7 net short term capital gain or loss , line 15 net long-term capital gain or loss , and line 21 allowable loss, all on schedule D )
If we split the capital loss carryover, should I enter -$4000 for my net long-term capital loss. For the allowable loss, should I enter $3000 or $1500?
Thanks!
If we split the capital loss carryover, should I enter -$4000 for my net long-term capital loss. For the allowable loss, should I enter $3000 or $1500? Yes, if you agreed to split the capital loss carryover, you would enter it as -$4,000 and -$1,500. You would split both items so that everything matches.
Thanks! Should I split the short term capital gain as well?
So I was married when my ex and I filed our 2022 return. Together we had about $8000 long term capital loss and about $1600 short term capital gain in 2022. The allowable loss for us was $3000. Our taxable income in 2022 was about $150,000.
We divorced in 2023. Since I'm filing the 2023 return on my own, I was wondering what numbers I should enter in the capital loss carryover section.
the $8K of losses and $1.6K of gains the net capital loss is $6.4K of which $3K was used so that leaves $3.4K as a carryover long-term
how to split
During a divorce, capital loss carryovers are generally allocated based on separate capital gain and loss calculations for each spouse. This ensures that the spouse who suffered the capital loss can use the carryover for tax purposes. If the losses were incurred jointly by both parties, the carryover is divided equally.
It’s important to note that some states choose to treat capital loss carryovers as marital property. This means it is subject to “equitable division” instead of allocating it to the spouse who actually suffered the loss.