Is the capital loss carryforward being applied incorrectly?
As I understand capital loss carryforwards for individuals, you can carry the loss forward indefinitely, but it offsets only net capital gains, not ordinary income. I entered my capital loss carryforward but sold/purchased -0- investments this year. So entering it should not have changed my refund amount, but it changed it immensely. I'm worried about this being incorrect.
Comments
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Hi clwhite1,
You can use capital losses to offset capital gains. If you have more losses than gains (including losses carried over from prior years), you can claim up to $3,000 ($1,500 if married filing separately) of the loss to offset ordinary gains. Any extra loss amounts in excess of that $3,000 limit will be carried forward to the next tax year. For more information on this limit, see:
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dd
