Question

How to reduce the amount of carryover loss to apply to ordinary income

Forum|Forum|1 year ago
February 27, 2025
1 reply
0 views

There seems to be no way in the PC download version of TT Deluxe 2024 to reduce the automatic $3000 credit to ordinary income based on a carryover loss >$3K from 2023. I do NOT want to use the carryover for a credit in 2024; I want to save all of the carryover loss from 2023 to use in future years. An extensive web and AI search did not turn up any useful info on how to reduce the credit. I tried to edit fields in Schedule D and the carryover worksheet manually, but TT didn't allow this. Is it possible to reduce the automatic $3K credit in TT? If so, how? Thanks for any help.

rjs

Employee

There is no way in TurboTax to reduce the amount of capital loss carryover that is used, because there is no way to reduce it in the tax law. You are not allowed to used a smaller amount, and you are not allowed to not use it at all. A capital loss carryover must be used according to a fixed set of rules in the tax law. You have no choice about how much of it is used or when it is used.