how can i add schedule-d to show long term capital losses? i lost in espp and need to claim $3000 each year for losses. last year cpa did it. trying in turbo tax now.

[rjs · Accepted solution]

Go to the following link for instructions to enter your capital loss carryover. TurboTax will report the carryover on Schedule D.

How do I enter my capital loss carryover?

[LaShaunA3]

To report your ESPP loss, go to Schedule D., and enter your sale. TurboTax will automatically generate Schedule D and Form 8949 and apply up to the $3,000 capital loss limit each year.

If you had prior-year losses, make sure to enter your capital loss carryover when prompted so it continues from last year.

[patwardhan]

Thanks. That worked.

[ThomasM125]

In TurboTax, when you enter the investment sales, indicate that you sold employee stock and choose the enter sales one by one option. Often, when employee stock sales are involved, your cost basis reported on the Form 1099-B will not reflect the discount that is reported on your W-2 form, so the cost basis may be understated.

When you enter your Form 1099-B reporting the stock sales, you will see an option that says the cost basis is incorrect or missing on my Form 1099-B. It is on the screen where you enter the proceeds and cost basis. If you check that box, TurboTax will allow you to either enter the correct cost basis or will offer to help you determine what it is and then enter it for you.

Usually what you must do is to take the discount listed on your W-2 form and divide it by the number of shares sold to arrive at the discount per share. Then, you add that to what you paid per share to determine the cost per share. You then multiply the cost per share by the number of shares sold to arrive at the correct cost basis to enter for your Form 1099-B.