My current financial situation would make my tax liability this year $0. I have a capital loss from 2023 of approximately $7000 and a capital gain in 2024 for approximately the same amount. Are you required to use the 2023 capital loss in 2024 or can you carry it forward to 2025?
Yes, you definitely want to use it or you would lose it. You must report it each year until it is used up. You are not allowed to skip a year and then continue to use it. Be sure to check out your Schedule D and worksheets before your file.
Thank you, I was hoping we could skip using the loss this year since the capital gain doesn't affect our taxes, with or without using the capital loss.
Unfortunately, you can't choose which tax years to apply your carryover to. Carryovers from this year's return must be applied to next year's. Capital Loss Carryover