Question

Capital Loss carryover

Forum|Forum|1 year ago
September 25, 2024
2 replies
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Under Investment Income section of TurboTax Desktop, the amount of the Capital Loss carryover for 2023 is confusing me.   I also used TurboTax Desktop last year (2022).

The investment income amount for 2022 is correctly reported as -0- and 2023 is correctly reporting the loss amount - $687.
The Capital Loss Carryover is correctly reported as -0- for 2022, but incorrectly reports the 2023 carryover amount as -$688, instead of -$687.
When opening the - $688 amount (link) the Capital Loss Carryover calculation / explanation is:

“This summary shows how your capital losses will be used to reduce your income this year. It also shows any remaining loss that will be carried forward to next year:
Capital Loss Carryover from 2022:           0
Net Capital Loss in 2023:                   - $687
*Capital Loss Applied in 2023:         - $   1
Capital Loss Carried to 2024:             - $688 “

Questions:
- Why is Capital Loss Applied in 2023 reported as -$1.00 as no capital loss is seemingly to be applied?
- Why is Capital Loss Carried to 2024 greater than the Net Capital Loss in 2023?

Thank you!

KarriC

I believe this $1 showing in "Capital Loss Applied in 2023" to be a rounding adjustment. We round to the nearest dollar when doing our taxes, and sometimes we have a mismatch when this happens.

Since your Capital Loss Carryover from 2022 was "0", and your Net Capital Loss in 2023 is ($687), when we add the additional ($1) of Capital Loss for 2023 (rounding error), we arrive at a Capital Loss carryover to 2024 of ($688).

I also see you have an asterisk (*) next to the *Capital Loss Applied in 2023. I think there may be a link on the bottom of that page in TurboTax that will tell you what that asterisk signifies.

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O

OpeA1

Hello mikeyo1:

Please take a look at the following IRS link regarding capital losses: Topic no. 409, Capital gains and losses.

TurboTax appears to be rounding up the numbers you put in. This may be the reason for the $1.00 you are seeing in 2023. Please try to put in whole numbers only by doing the rounding yourself. This should give you a different outcome.

I hope this is helpful.

Thank you!

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