Question

I have capital loss carryover from my previous year in Schedule D/line 16. When I carryover this year, can I write off both short and long term gains?

Forum|Forum|2 years ago
November 8, 2023
1 reply
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Tax loss carryover from previous year is a combined loss of long and short. If my short and long gains this year are less than the loss from previous year, can I write the gains totally before deducting another 3000 in 1040?

TurboTax Premier Online

N

NCPERSON1

@mageshcmouli he carryloss forwards will be used to net against your 2023 gains.

only if there is a loss still remaining will up to $3,000 be used to reduce ordinary income.

fanfare

Employee

your loss is not combined, the short and long term losses are maintained separate, waiting for you to import into your new tax return for 2023.

@mageshcmouli

M

mageshcmouliAuthor

Thank you @NCPERSON1 and @fanfare

clarification: Say I had 20K in short term loses and 5k in long term losses in 2022 (line 16 in schedule D is -25K). I then applied 3K against regular income. In 2023, I will carry over 22K in loses. Will that net against total gain this year and any left over towards the 3K in ordinary income.