Greetings - I have $80K in Capital Losses carried over from last year. Last year I reported the maximum $3k and it did NOT help my tax return at all. So what is the point of reporting the max or can I put in 0 or say 100 and carryover the rest to a time when it's actually beneficial??? Say when I have actual capital gains to offset???
Just seems dumb to draw down on my capital losses when it's not beneficial at all. Thank you so much
your carryover is depleted by $3,000 automatically no matter it benefits you are not, in most cases.
you must report your entire carryover LT and ST on Schedule D every year even if you do nothing else with investments.
How is it automatically done? I can put in whatever I want for my Capital Loss Carryover, $0-$3,000.
if you put in whatever you want, then you are falsifying your tax return.
Instead use the Turbotax Federal Carryover Worksheet, which you need to import from last year when you start your tax return.
Yeah it's already imported. I still don't get why I'm forced to carryover a capital loss of $3,000.00?
Refer to the Instructions for Schedule D at www.irs.gov .
Start with the last bullet item on the top of the first page.
Then see the worksheet on page D-12
Thank you. Are you sure I have to claim the $3,000.00 if it does not affect my tax return at all? I am getting different answers.
your carry over is 77,000 if you had an 80,000 loss in 2018.
your carryover for 2020 will be 74,000 after you take the $3,000 max deduction for a capital loss.
If your tax is zero, your carryover won't be reduced.
That is unusual.
If you had a choice, it wouldn't be automatic.
TurboTax does the arithmetic for you.