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Do I need to file taxes in CA to carry over a capital loss after moving?

Forum|Forum|6 years ago
June 4, 2019
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I have a capital loss carry-over from California from last year. I didn't have any income in California this year (I'm now a resident of Oregon). I may have more income in the future, but I don't know for sure.

Do I need to file taxes in CA each year in order to carry over the capital loss until I have income again in CA?

Or can I wait and use that capital loss in a couple years without filing for each year in between?

Will I lose $3000 of the capital loss each year that I don't have income in California?

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Best answer by DS30

No, you will not need to file a CA state income tax return to preserve your ability to claim a CA capital loss carryover to a future year (when you can use this carryover loss on a CA state income tax return).

Just make sure that you keep accurate records of your CA carryover with your tax files for future reference.

You will not loss any of your CA carryover if you don't have any CA income during the year. The full amount of the carryover will just carryover to a future year until all the carryover is used up.

D

DS30Answer

Employee

No, you will not need to file a CA state income tax return to preserve your ability to claim a CA capital loss carryover to a future year (when you can use this carryover loss on a CA state income tax return).

Just make sure that you keep accurate records of your CA carryover with your tax files for future reference.

You will not loss any of your CA carryover if you don't have any CA income during the year. The full amount of the carryover will just carryover to a future year until all the carryover is used up.

S

Steve_Questions

The second part of this questions is interesting ("will the carryover be reduced by $3K per year?"), and I wanted to see if there is additional information about answer. I am trying to follow the capital loss carryover worksheet, and it seems that even through my CA AGI is zero and I am not using any of my capital losses, the worksheet wants to use the maximum allowable capital loss of $3K to reduce my capital loss carryover for the the next year. I agree with the answer provided, that this does not seem correct, but how should I fill out the form so that it is clear my capital loss carryover should not be reduced?

DaveF1006

It is safe to assume in this scenario that your $3K will remain forever unless you resume living in California. it should not be reduced for any reason.

@SteveCBLum

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S

Steve_Questions

The second part of this questions is interesting ("will the carryover be reduced by $3K per year?"), and I wanted to see if there is additional information about answer. I am trying to follow the capital loss carryover worksheet, and it seems that even through my CA AGI is zero and I am not using any of my capital losses, the worksheet wants to use the maximum allowable capital loss of $3K to reduce my capital loss carryover for the the next year. I agree with the answer provided, that this does not seem correct, but how should I fill out the form so that it is clear my capital loss carryover should not be reduced?