Carryover of Short-Term Capital Loss
I had a short-term loss of about $6400 on my 2022 return (filed with FreeTaxUSA), of which $3000 could be claimed and the rest was carried over. I expect to have an additional short-term capital loss this year. Will the 2023 software automatically handle the carryover and additional loss?
Best Answer
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Thank you for this question Jay.
Yes, FreeTaxUSA will carryover the leftover carryover loss that was unused to your 2023 tax return software when you rollover your information from 2022. When you input your 2023 stock sales and cost basis, any loss calculation will add to your carryover losses and be shown on your 2023 Schedule D when you view it. The software will then carry the maximum deductible $3000 loss to the first page of your 2023 Form 1040 as a deduction from total income. The rest will be calculated to carryover to the next tax year.
Answers
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Thank you, Cory. It's what I hoped and expected, but it's good to be sure.