Tax Loss Carryover Schedule D

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jimmy
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Tax Loss Carryover Schedule D

Post by jimmy »

How do I figure out the 2013 tax loss carryover total? Is there a line number on the schedule D that has this amount that will be carried over to 2014? Just trying to do some tax planning in preparationg for 2014 taxes.

Thanks for the help..
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Epsilon Delta
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Re: Tax Loss Carryover Schedule D

Post by Epsilon Delta »

The carryover isn't on any one line of the prior years return, but it is calculable by combining several.

Use the Capital Loss Carryover Worksheet in the Schedule D instructions.

I don't think the 2014 version is out yet, but the 2013 version should be close. Even if line numbers have changed you should be able to work it out.
jebmke
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Re: Tax Loss Carryover Schedule D

Post by jebmke »

If you used tax software last year (a) the worksheet may be there and printable and (b) the carryover amounts should roll forward to this year's return.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
kaneohe
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Re: Tax Loss Carryover Schedule D

Post by kaneohe »

The correct way to do it is as described by Epsilon Delta above. Here is a few second method that seems to agree for most of my situations...............ymmv, esp.
if income is low.

Sch D http://www.irs.gov/pub/irs-pdf/f1040sd.pdf

Line 7 is net ST gain/loss. Line 15 is net LT gain/loss. Line 16 is net ST/LT gain/loss. If line 16 is loss, then either line 7 or line 15 or both are losses.
If both were losses last yr and you have carryover this yr, that means the line 16 last yr was > 3K loss. Since 3K was used up against ordinary income, last yr's
line 16 loss minus 3K is this yrs carryover. I believe that the 3K used last yr is ST loss first.

Ex: last yr line 7 = 10K loss; line 15= 20K loss; line 16=total loss= 30K loss. Use up 3K (starting w/ ST first) loss against ordinary income last yr leaves
carryover of ST loss= 7K and carryover of LT loss = 20K.

If income is extremely low, there may not be any loss used up so everything could carry over and of course there could be all kinds of intermediate cases where less
than 3K is used up.
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Epsilon Delta
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Re: Tax Loss Carryover Schedule D

Post by Epsilon Delta »

jebmke wrote:If you used tax software last year (a) the worksheet may be there and printable and (b) the carryover amounts should roll forward to this year's return.
The carry forward to 2014 does not appear explicitly on the IRS's 2013 worksheet. It's certainly possible for a tax preparer to add value with a proprietary "notes for next year", but in my experience that's a feature of a superior CPA rather than tax software.

In 1995 the carryover computation was performed for the next year, 1996. But it changed some time before 2013 to the current situation were it is performed for the current year. Not sure when, but some time between 1995 and 2013 there may have been a glorious year with no carryover computation at all.
livesoft
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Re: Tax Loss Carryover Schedule D

Post by livesoft »

One can request a free transcript of their previous year's tax return and work out what the carryover value is from that transcript. Don't ask me how I know that. :)
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jebmke
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Re: Tax Loss Carryover Schedule D

Post by jebmke »

Epsilon Delta wrote:
jebmke wrote:If you used tax software last year (a) the worksheet may be there and printable and (b) the carryover amounts should roll forward to this year's return.
The carry forward to 2014 does not appear explicitly on the IRS's 2013 worksheet. It's certainly possible for a tax preparer to add value with a proprietary "notes for next year", but in my experience that's a feature of a superior CPA rather than tax software.

In 1995 the carryover computation was performed for the next year, 1996. But it changed some time before 2013 to the current situation were it is performed for the current year. Not sure when, but some time between 1995 and 2013 there may have been a glorious year with no carryover computation at all.
My software has a worksheet (I checked both 2012 and 2013) that calculates the carryover for the next tax year. Maybe it isn't included in all software packages.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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LadyGeek
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Re: Tax Loss Carryover Schedule D

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (taxes).
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Ged
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Re: Tax Loss Carryover Schedule D

Post by Ged »

jebmke wrote: My software has a worksheet (I checked both 2012 and 2013) that calculates the carryover for the next tax year. Maybe it isn't included in all software packages.
Mine does also. It was quite handy this year when I wanted to figure out the tax consequences of doing a Roth conversion.
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