Doing my 2023 return. I have a stock capital gain that turbo tax shows being applied 100% against my loss capital forward, reducing the loss by the amount of the gain.
However, the gain does not seem to be deducted from total income or lower my taxes, because when I deduct the gain, my tax due goes down.
Shouldn't applying the gain against the carry forward loss wipe out the taxable gain? is this a software bug?
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That is a little hard to follow. But of course your tax due should go down. And you have it backwards. Technically the current gain is not applied to the loss carryover. The Capital Loss Carryover is applied to the gain.
You get to first offset the loss against any gains you have each year so that can use more of it up. Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year. Turbo Tax does all the calculations for you. Just enter the prior year carryover amount.
Thanks, VolvoGirl!
Really appreciate your response!
I will study my issue a little further and may follow up with another question.
Thanks for being there!
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