How much prior year capital losses can offset future gains with?

Forum|Forum|7 years ago
June 1, 2019
2 replies
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I have over $200,000 in prior year capital losses from short and long term stocks. How much am I able to use every year to offset capital stock gains?

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Best answer by Hal_Al

All of it, up to the actual amounts of your gains for the current year. You can then deduct $3000 against ordinary income (on line 13 of form 1040). It doesn't matter if the current year gains are long or short term, the loss carry over is applied to all gains.

So, for example, if you have $50,000 in gains this year, your schedule D and line 13 of form 1040 will show a net $3000 loss and $147,000 will carry forward to next year.

Hal_AlAnswer

Employee

All of it, up to the actual amounts of your gains for the current year. You can then deduct $3000 against ordinary income (on line 13 of form 1040). It doesn't matter if the current year gains are long or short term, the loss carry over is applied to all gains.

So, for example, if you have $50,000 in gains this year, your schedule D and line 13 of form 1040 will show a net $3000 loss and $147,000 will carry forward to next year.

VolvoGirl

Employee

So in that example if you have 50,000 in current gains you can use up 53,000 of the carryover loss.

T

TomD8

Employee

Once a gain is realized, it must be declared on your taxes for that year, and there is no carry forward for capital gains.

You can deduct a maximum of $3,000 of excess capital losses each year. Excess loss amounts that exceed $3,000 can be carried forward to the following years, deducting $3,000 per year until the loss is exhausted. You cannot skip a year with losses being carried forward.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

J

jonkpeterson

Employee

if I had $20,000 carry-over short term losses in 2016 and $20,000 short term gains in 2017 ,can I offset the entire $20,000 gain I plan to receive in 2017?