Capital loss carryover from two years ago?

sammysosahat
sammysosahat Member Posts: 1 Newcomer
edited March 31 in Filing my taxes

My schedule D line 16 was -60000 for 2022 and -5000 for 2023. This should mean I have a full -3000 to carry over for this 2024 (and many years to come), right? But it seems like for 2024 I'm only able to use the -2000 carry over from 2023. Is there something I'm missing?

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  • JMSSGV
    JMSSGV Member Posts: 243
    Answer ✓

    You need to look at your Capital Loss Carryover Worksheet from each year to see how your carryover was applied. You might not have needed the full amount this year if your taxable income was reduced to zero without applying the full carryover, or you might have used more of the carryover to offset gains in a prior year and you didn't realize it.

Answers

  • JanaA
    JanaA FreeTaxUSA Agent Posts: 89

    Hello sammysosahat!

    Your loss carryover can vary based on your filing situation each year. JMSSGV is correct, you will need to review your carryover worksheet each year to see how the carryover has been applied. Any capital losses that exceed $3,000 will carry forward each year until they're fully used up.

    From your post, it sounds like your loss has been limited in the past. So, while you can potentially apply the carryover in 2024, this may have been limited based on your situation. A capital loss can only be applied if you have income to support this loss application.

    To review your capital gains and losses:

    1. Select the Summary tab in the software.
    2. Click to view on the Capital Gains (Losses) line.

    This will display the following forms and worksheets:

    • Schedule D
    • Form 8949
    • Capital Loss Carryover Worksheet

    These documents will help you determine:

    • How much of your capital loss has been applied to your 2024 return.
    • The amount of loss, if any, that can be carried over to your 2025 return.

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