Per TurboTax I received the following question:
Amount to be Carried Back - Enter the amount of loss you plan to carry back from 2022. You will also need to file an amended return for the year to which you're carrying back the loss.
I had Section 1256 losses in 2022 that I am looking to carry back to previous years to receive a deduction.
Is the carryback amount limited to the tax filing status you had for that year, or is it limited to the status you plan on filing in the current year? I plan to file MFS for 2022, I assume as long as I don't amend filing status then the c/b is relative to that years status.
For example, if I have $7,000 left to carryover (back or forward) and in 2022 I plan to file MFS, in 2021 MFJ, in 2020 I was single, in 2019 I was single, is my understanding via this table correct?
| Year | Filing Status | Max c/b |
| Future Carryover | TBD | $1,000 (carryover) |
| 2022 | MFS | $1,500 (Capital loss 2022) |
| 2021 | MFJ | $3,000 |
| 2020 | Single | $1,500 |
| 2019 | Single | $1,500 |
Your calculations are correct. The limit is based on the status you had in the year you carry back to.
No, you can use them against any capital gains in the years that you carry the losses back to. In addition, if you had no capital gains in those years, then the losses can be used against regular income (up to $3000).
Your calculations are correct. The limit is based on the status you had in the year you carry back to.
Thanks @RobertB4444. Disregard my previous comment. Are the losses you can carry back limited to the 1256 gains you had previously?
I only started trading 1256 contracts in 2021 and had a gain of approx $2,000 in 1256 contracts, $1,200 in regular stocks. Does that mean I can only reduce my gains by $2,000, and I can't carry back to a year when I did not have any 1256 gains (i.e. 2020)?
No, you can use them against any capital gains in the years that you carry the losses back to. In addition, if you had no capital gains in those years, then the losses can be used against regular income (up to $3000).