Capital Loss Carry Forward

Forum|Forum|3 years ago
January 31, 2023
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If there is a large capital loss in Year 1, and in following years there is no income of any kind , am I correct in understanding that the Year 1 Capital Loss Carry Forward must be reduced $3,000 every year even though there is no tax benefit to the taxpayer ?

Not A Product Question

VolvoGirl

Employee

If you have a negative AGI or negative taxable income it will show up on 1040 BUT it won't reduce the carryover to the next year.

There is also a Carryover Worksheet showing the carryover from the prior year and the current amounts. Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

In the Online version you have to save your return with all the worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.