Question

Stock market loss

Forum|Forum|4 years ago
March 11, 2022
1 reply
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Hi I had $4000 loss from stock market in year 2021 and I was told I can only claim $3000 loss per year. If I would like to carry the unclaimed $1000 loss to my 2022's return, do I still need to report the $1000 in 2021 return?

D

DavidD66

Yes. The loss has to be reported in the year it occurred. In order to carry a loss that occurred in 2021 forward to 2022 or beyond, it must be reported on your 2021 tax return. Capital losses that exceed capital gains in a year may be used to offset ordinary taxable income up to $3,000 in any one tax year. Net capital losses in excess of $3,000 can be carried forward indefinitely until the amount is exhausted.

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