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October 3, 2023
Question

losses carry back to 2022 - schedule D at #16 and #21

  • October 3, 2023
  • 1 reply
  • 0 views

2019 tax return on Schedule D #16: -13, 431,  #21: $3000.00

2020 tax return on Schedule D  # 16 : 2,009,  #21: 0

2021 tax return on Schedule D  # 16 : 15,581,  #21: 0

How  to file the 2022 tax return on losses carry back to 2022 from 2019? 

    1 reply

    rjs
    Employee
    October 3, 2023

    I don't understand what you mean by "carry back." A capital loss carryover is carried forward from one year to the next, from 2019 to 2020, from 2020 to 2021, and so on. You cannot skip years. You have no choice about when to use the capital loss carryover. The capital loss carryover from your 2019 tax return should be on Schedule D lines 6 and 14 in your 2020 tax return. You did not give all the details, but from the figures that you posted it looks like you used up the capital loss carryover in 2020, so you have no capital loss carryover from 2020 to 2021 or from 2021 to 2022.


    If the capital loss carryover from 2019 was not entered in your 2020 tax return, you have to amend your tax returns for 2020 and subsequent years to properly report the capital loss carryover until it is used up. The $15,581 gain in 2021 would have used up any remaining carryover from 2019, so you would have no capital loss carryover from 2021 to 2022 in any case.


    Again, you cannot choose when to use a capital loss carryover. You have to carry it from year to year.