Question

Bug in capital loss carryover?

Forum|Forum|6 years ago
March 7, 2020
1 reply
0 views

TurboTax 2019 transferred my data from 2018. For the capital loss carryover calculation, instead of taking line 10 from 2018 form 1040 to use as last year's taxable income, it picked up the sum of line 9 (qualified business income deduction) and line 10. The instructions on the screen clearly state that taxable income should only come from line 10, as do the instructions for the capital loss carryover worksheet currently posted on the IRS website. Since several other posts have previously reported the same problem, why hasn't TurboTax already responded and fixed this bug???

A

Anonymous

TT has more than a few bugs to fix.

G

galaxy2p

The fix is incorrect. It should use the formula to get the amount for line1 NOT the number directly from Form 1040 line 10. Even though it works for most of people but it doesn't work for people whose last year deduction is greater than AGI.

The capital loss carryover worksheet said

"Enter the amount from your 2018 Form 1040, line 10. If a loss, enter as a negative amount..."

It shouldn't take the 2018 Form 1040 line 10 amount directly to the capital loss carryover worksheet line 1. Form 1040 line 10 amount is taxable income, if it is < 0 , enter 0, therefore it is never a negative number.

It should use the formula to get the result of Form 1040 line 10 since AGI might be less than the deductions. That means : AGI(line7) - Standard deduction(line8) - Business income deduction(line7) = Capital loss carryover worksheet line 1

My AGI is less than standard deduction in 2018. My taxable income is 0 but my capital loss should be able to carryforward to 2019. (The carryforward to 2019 worksheet from Turbo Tax 2018 is correct though.) However, at Turbo Tax 2019, the capital loss carryover worksheet line1 is 0 (it should be a negative number) which is taken from Form1040 line10, so I don't have any capital loss carryover for 2019 any more!

Can you fix this soon? Otherwise I need to file manually which is painful. Thanks.