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December 15, 2023
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Section 1256 loss carryover

  • December 15, 2023
  • 1 reply
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If I had $7k in losses and used the $3k last year, do I need to trade this year in order to carryover another $3k or can the remaining carryover from last year's losses just be applied towards my W2 income if I didn't make any options trades this year in my taxable account?

 

Trying not to miss the remaining SPX options loss carryover.

Best answer by Mike9241

no need to do any RFC (1256) or other trades of capital assets. Of the $4K in losses up to $3K can be used to offset other income this year and the remaining $1K carries over to 2024

1 reply

Mike9241Answer
December 15, 2023

no need to do any RFC (1256) or other trades of capital assets. Of the $4K in losses up to $3K can be used to offset other income this year and the remaining $1K carries over to 2024

BoydacAuthor
December 15, 2023

Ok, thank you.