Do I have to report Capital Losses?

[bigtaxquestions]

I don't need any deductions, the losses are negligible and won't help me this year get any greater credits, so do I have to report them. I would rather submit the completed tax return now. So do I have to submit the capital losses or can I just submit my tax return now and amend/add them later?

[bigtaxquestions]

Follow up, even though there is no gain at all I get that, but I should be able to file an amendment correct? I don't want to wait another month and a half to get the 1099, and then I can either pay or receive more?

[jerry2000 · Accepted solution]

Any capital asset sales create a taxable event. You must report all sales and determine gain or loss. Do not fail to do that. The IRS gets a copy of the 1099-B that will report the sales to you. If you do not report it, then you can expect to get a notice from the IRS declaring the entire proceeds to be a short term gain and including a bill for taxes, penalties, and interest. You really don't want to go there. Report the sale based on the 1099-B that you will get.

[bigtaxquestions]

Follow up, even though there is no gain at all I get that, but I should be able to file an amendment with that information later on correct? I don't want to wait another month and a half to get the 1099, and then I can either pay or receive more (since it's losses and I wouldn't get anything additional) I'm assuming they would just process the new info and that would be that.

[jerry2000]

When you file a tax return and sign it you are swearing under penalty of perjury that it is true accurate and correct. If you knowingly and willingly file a tax return with information that you know is not complete and accurate, then you  are filing a false tax return and that is a federal felony.

[bigtaxquestions]

I wouldn't really turn it into a question of perjury. You don't seem to be understanding what I am asking, because as far as I'm reading it taxes are filed on income only.   Capital Losses by any definition would not be income and would be deductions.   I am swearing that all taxable income is on there, so that seems to be a little bit of a heinous response.  Last I checked the less deductions you incorporate the happier the government is.

[bigtaxquestions]

Not only that but I would assume there is a way to submit the data from the 1099 prior to receiving it since its just a few sales?

[jerry2000]

The IRS gets a copy of the 1099-B that you get. They don't know whether you had a gain or loss until you tell them by entering the cost  information on your tax return. The IRS does check to see if you report stock sales. If you don't, then they assume that the entire proceeds was a short term capital gain and they will send you a bill for the tax on the entire proceeds amount, and they will include penalties and interest. If you do not report the sale, then expect a letter from the IRS in just under a year from when you file.

[CKBonney]

Why can't you get your 1099 statement for capital losses? They are all on line these days. I say go ahead and file. I missed including losses when Schwab reported them for me, the IRS slapped me with a$100 fine. If you're fine with that, then let'r rip tater chip and stop beating an issue you got advice on already. 

[smoore22031]

If I have a stock losses of $-3000 that is reported  on my Form 1040 line 7 "Capital gain or loss.", am I forced to write that losses off this year when its not needed? Also, may it be carried over to the following year instead?

[robtm]

If  the -$3000 loss occurred in 2024 you can only apply it to 2024 taxes. Anything greater than -$3000 can be carried over into 2025 taxes.

[Mike9241]

if you have a positive adjusted gross income without the capital loss, it will be used up top the lesser of $3000, your net capital losses, or your pre-capital loss AGI. Any not used is a carryforward to 2024. You must report because activity because the iRS is going to try to match the proceeds you report on schedule d to the documents that it gets, and if they don't match by more than a few dollars, expect to hear from them.