Question

Divorced 8/28/2019. Previously filed Married Filing Joint. For 2020, unsure how to separate carryover losses for Single status.

Forum|Forum|5 years ago
February 7, 2021
1 reply
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Hope to share one Turbo Tax disc to prepare both Single returns, but don't know if TT can/will separate the carryover losses correctly.

TurboTax Deluxe Online

G

gloriah5200

When you are dividing up the capital loss carryover from a prior year of filing married filing joint to carry over into the next year of filing single returns, you would need to allocate the ownership of the loss to the original owner of the asset sold generating the loss.

If you have capital losses from the sales of assets that were originally owned by one taxpayer or the other, then that ownership would remain with the original owner.

If you have losses that were previously owned jointly then the carryover loss will be divided equally.