2020: Loss from K-1 Schedule D -3,000 used. 2021: No federal tax liability -3,000 not used. 2022: -3 000 not used. No capital gains. Tax owed 2,000. Amend?

Forum|Forum|2 years ago
January 19, 2024
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Please help. Only used -3000 . There is a Capital Loss Carryforward Worksheet showing 12,395 carryforward to 2023. The 2020 loss was 21,395. Since I have a capital gain in 2023, I need to correct all. Products used: 2020 Turbo Tax Online, 2021 Turbo Tax Online Premier Assist and Review and 2022 Turbo Tax Deluxe Desktop. Help would be great.

TurboTax Online

Best answer by BillM223

Did the -$3,000 not appear on line 7 (with a checkmark in the box) on the 2021 1040, and ditto with the 2022 1040? This is how the $3,000 reduces your income, and you are expected to keep track of the carryover since there is no need for a Schedule D.

If line 7 was not used in either year, then there must have been something else, like your AGI being too low to allow you to use the carryover.

Mike9241

if you had a capital loss of $21395 in 2020 $300o of tat was used in each year 2020,2021,2022 so 12395 c/f would be right for 2023.

the exception would be if with that loss you had negative AGI for one or more of those years, then depending on how negative some or all of the loss wouldn't be used.

included is the worksheet to figure the CLCO from 2020 to 2021 on page D-11

https://www.irs.gov/pub/irs-prior/i1040sd--2021.pdf

MedicinemanAuthor

This is Medicineman again. Your answering so soon is really helpful. I will review all the information you gave me. Another thing that puzzles me is this. There was no Schedule D or anything at all showing the- 3,000 on the 2021 and 2022 tax returns. Nothing was subtracted from income to compute the total income like the first year for 2020. Does the Schedule D not need to be sent in with the tax return every year? Is this something that the IRS just knows from the previous tax return and reduces it even if it is not used? Sorry to seem so dense. Thanks again!