Thanks Hal_AI.
You answered my question! THANK YOU SO MUCH!
I get what you are saying.
If my low income is “only” capital gains, it must be netted against my carry over loss. And yes, I had put I - $ 2500 on line 7 of 1040, and still my net income on line 15 of 1040 is a huge minus number. That means, I can add the -$2500 of line 7 of 1040 back on line 2 of the carry over worksheet. That still leaves me with a large minus income on the worksheet line 1. You are confirming that the loss of $2500 of schedule D (line 15 and 21) will become my carry over on the worksheet. Thanks.
Pretty sad, given that my income is so low and still I have to use up all my carry over loss.
I guess now that the IRS language is sometimes pretty inaccurate.
In an IRS Note from 2009 it states: „ In a year that the taxpayer's deductions exceed income by an amount greater than the sum of 3000 and the amount allowable for personal exemptions, the carry over loss will not be reduced “. I know it's now standard deduction instead of personal exemption. STILL the IRS should have written EXCEPT if that income is a “capital gain”.
