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March 18, 2024
Question

Can capital loss offset more than $3000 in year of death?

  • March 18, 2024
  • 2 replies
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Does anyone know if there's any way to offset more than $3000 of regular income with capital losses in the year of death?  My dad died last year, and I'm doing his final year taxes.  He had more capital losses than regular income, yet owes a bunch in tax.  Is there any way I can apply that capital loss to his regular income, or does the capital loss deduction for everything beyond $3000 just disappear?

2 replies

Employee
March 18, 2024

Only $3,000 can offset regular income. The offset can only be applied in each tax year. 

March 18, 2024

Sorry for your loss. did he have a spouse and was he a resident of a community property state or was it a joint account? if not the excess losses just vanish. 

terpsuckaAuthor
March 18, 2024

Thanks, no, he was single.  I thought this was the correct answer but I was hoping someone might know something I didn't.