How do I stop my capital loss carryover?

Forum|Forum|2 years ago
March 25, 2024
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Best answer by VolvoGirl

You have to report the carryover every year until it's used up. You can't skip a year. Even if you don't report it on your return you have to reduce it by the 3,000 (1,500 MFS) when you carry it over to next year. You can't choose when to use it.

This is from the IRS Pub 550 page 66

"When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year. "

Here is pub 550… http://www.irs.gov/pub/irs-pdf/p550.pdf

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.

rjs

Employee

What do you mean by "stop"? Do you mean that you don't want to use the capital loss carryover this year? You can't skip a year and then use it in a future year. The capital loss has to be carried from year to year until it's used up. If you omit it from your tax return this year, the loss is gone for good.

Vanessa A

If you stop it, you cannot pick it back up in future years so you would lose it. It has to be used consecutively not just in the years you want it.

If for some reason you want to stop using it all together and lose it forever, then you can delete the carryover worksheet. You can also go to Income>>Investment Income>>Capital Loss Carryover. Then you can delete the carryover.

But remember, once you do this, you cannot take it in future years without amending this years return.

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