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I have a stupid question about my $60K Capital Loss Carryover from 2021

This year I sold my second home and I net $160k profit. When I file my return, TurboTax will subtract $60k from $160k equals $100k net profit. Is there a way in Turbotax that can ignore my $60k Capital Loss Carryover and let me pay tax on the original $160k profit?

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3 Replies

I have a stupid question about my $60K Capital Loss Carryover from 2021

NO ... all prior year losses must be taken into consideration on the Sch D and used  ... you cannot choose to ignore them, skip a year or fail to use them. 

rjs
Level 15
Level 15

I have a stupid question about my $60K Capital Loss Carryover from 2021

It's not up to TurboTax. The tax law requires the capital loss carryover to be used. No tax software can do what you are asking for.

 

dmertz
Level 15

I have a stupid question about my $60K Capital Loss Carryover from 2021

If you would benefit from moving some future income to 2022 (perhaps because you anticipate that income being taxed at a higher rate in the future), there are various ways that you might be able to generate additional 2022 income such as doing a Roth conversion or harvesting capital gains.  As others have said, your $60k capital-loss carryover must be included on your 2022 tax return.

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