Where in this year's tax forms do I find out how much of last year's carryover capital gains losses were used and how much is left over for next year?
Sorry for the dumb question. I am using taxCut and cannot find where that info is to be found.
Jeff
The carryover is entered on lines 6 and 14 of Schedule D. It will all be used, but then if your net loss including carryover is greater than $3,000, the remainder will be carried forward to next year.
There's a worksheet in the 1040 instructions for that - Page D-7. Of course, you will need your prior year's return in order to have the amounts to fill in.
Thank you both.
So whatever the amount I had carried over from last year, only $3,000 of carryover long term losses can be used for this year (or any year?)? At $3,00 per year it can take many many years to use it all up if you have a large carryover amount .....
Jeff
Yes and no. Only $3000 can be used to offset _ordinary_ income, but you can use capital loss carry over to offset _any_ amount of capital gains for the year, up to the amount of the carry over loss. In other words, if you wish to sell an investment that has large capital gains and you have a large carry over loss, you can use the carry over loss to offset the gains on the stock sale and not pay capital gains tax on the stock sale.
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Thanks Ernie. Now I remember. For some reason I had the 2 confused.
Jeff
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