I've seen this mentioned both ways. My deceased Mother has a capital loss exceeding $3000. Can I use the rest of her capital loss for my taxes this year?

Forum|Forum|3 years ago
February 27, 2023
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JohnB5677

No, you cannot use your mother's carryover losses. They can only be used on her final tax return, and then they are gone.

"A decedent's NOL deduction from a prior year and any capital losses (including capital loss carryovers) can be deducted only on the decedent's final income tax return. See Pub. 536. You can't deduct any unused NOL or capital loss on the estate's income tax return."

Publication 559 Survivors, Executors, and Administrators

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LoveengleAuthor

Shame the IRS doesn't allow an exception to this in the deceased year.

JohnB5677

To make this clear. Yes, you can use the capital loss on HER final tax return which occurs in the year of her passing. On that Final Return it will offset any capital gain and an additional $3,000 can be used. Unfortunately, any carryover will be lost.

@Loveengle

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