Had minimal income during and right after covid. Started day trading. Had losess of 12k over last 3 years.
Made decent income this past year. Can i deduct the 12K incured over the last 3 years in trading losses from income generated from other sources in 2023?
No, but you can deduct up to $3000 ($1500 if married filing separately) of capital loss carryforward against your other income each year until the amount is used up.
The way this works is that each year you report your sales on your tax return. If it nets out to a loss, you use $3000 loss for the current year and the rest of your loss carries forward to the next year.
So you can't save the $12,000 loss and use it when you want to. You just carry the amount forward until it is all used up.
If you have filed with TurboTax every year, your losses stay in your account and are carried forward automatically.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2022 Intuit, Inc. All rights reserved.
Intuit,
QuickBooks, QB, TurboTax, ProConnect, and Mint are registered
trademarks
of Intuit Inc. Terms and conditions, features, support, pricing,
and service options
subject to change without notice.
Security
Certification of the TurboTax Online application has been
performed by
C-Level Security.
By accessing and using this page you
agree to the
Terms of Use.
Accessibility
