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scottretired
New Member

In 2020 I have a $12,000 long term capital loss with no capital gains to offset it. Am I required to use $3,000 against ordinary income in 2020?

 
3 Replies
Critter-3
Level 15

In 2020 I have a $12,000 long term capital loss with no capital gains to offset it. Am I required to use $3,000 against ordinary income in 2020?

Yes it is required ... there is no option to not take the allowed deduction. 

macuser_22
Level 15

In 2020 I have a $12,000 long term capital loss with no capital gains to offset it. Am I required to use $3,000 against ordinary income in 2020?

If you do not take it then you forfeit any remaining carry forward for future years.    You cannot skip a year.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fanfare
Level 15

In 2020 I have a $12,000 long term capital loss with no capital gains to offset it. Am I required to use $3,000 against ordinary income in 2020?

you have a big loss but $3,000 is the max you are allowed per year. the rest will carryover to coming years.

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