TLH how to keep track of carryover

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freckles01
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TLH how to keep track of carryover

Post by freckles01 »

After a couple wash sales, I figured out how to TLH but I haven't learned/kept a running tally of the losses and a quick search doesn't come up with any how to's.

TLH'd only a few years so hopefully not too much of a mess to clean up.

My accounts are at Vanguard -index funds. I've printed out 1099-B and securities purchased for 2020 from there.

The 1099-B lists the gain/loss- this is my TLH for 2020, yes?

Does Vanguard keep a running tally of the TLH losses year over year? If so, where do I look? Or am I supposed to keep my own accounting of it?

Is this too basic to discuss? I'm not a spreadsheet kind of person but if I need to learn I will:)

Thanks!
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climber2020
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Re: TLH how to keep track of carryover

Post by climber2020 »

I keep track of my carryover losses with a simple textedit document (the Windows equivalent is Wordpad).

One number for short term losses, another for long.

Each year when I finish my taxes, I make a new document with the updated numbers and use that file the following year when it's tax time.
jebmke
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Re: TLH how to keep track of carryover

Post by jebmke »

I have used up my carryover losses but my tax software used to produce a worksheet that showed the carry over from this year to next year. When I prepared a new return for the next year, if I used the same software it would pull this from the prior year file along with a host of other useful stuff.
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nalor511
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Re: TLH how to keep track of carryover

Post by nalor511 »

I keep track of carryover losses, prior year AMT credit carryover, and foreign tax credit carryover, on a tax spreadsheet updated each year. Google docs/drive.
dcabler
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Re: TLH how to keep track of carryover

Post by dcabler »

jebmke wrote: Wed Apr 07, 2021 3:24 pm I have used up my carryover losses but my tax software used to produce a worksheet that showed the carry over from this year to next year. When I prepared a new return for the next year, if I used the same software it would pull this from the prior year file along with a host of other useful stuff.
+1 Wouldn't surprise me if all tax software does this. Like keeping track of cost basis, it's good that somebody else is doing it. :D

Cheers.
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freckles01
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Re: TLH how to keep track of carryover

Post by freckles01 »

climber2020 wrote: Wed Apr 07, 2021 3:19 pm I keep track of my carryover losses with a simple textedit document (the Windows equivalent is Wordpad).

One number for short term losses, another for long.

Each year when I finish my taxes, I make a new document with the updated numbers and use that file the following year when it's tax time.
Do you get your numbers from the 1099-B form under gain/loss? I'm trying to figure out where I'm supposed to get the numbers from or if I'm supposed to compute it myself(hope not :confused).

I've read that some of the smarter folks here find errors from their brokerages and keep their own spreadsheets but they seem like they have spreadsheets for lots of stuff.
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freckles01
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Re: TLH how to keep track of carryover

Post by freckles01 »

jebmke wrote: Wed Apr 07, 2021 3:24 pm I have used up my carryover losses but my tax software used to produce a worksheet that showed the carry over from this year to next year. When I prepared a new return for the next year, if I used the same software it would pull this from the prior year file along with a host of other useful stuff.
Ok, I use H&R Block every year, so I can "assume" (fingers crossed) the software is keeping a running tally? Is there a specific worksheet or form I can look up?

Getting ready to do my 2020 taxes this week.
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Stinky
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Re: TLH how to keep track of carryover

Post by Stinky »

freckles01 wrote: Wed Apr 07, 2021 2:58 pm TLH'd only a few years so hopefully not too much of a mess to clean up.
Did you have tax losses only in 2020? Or did you also have tax losses in years before that?

It seems to me that you'll need to go back to whatever year you began to have tax losses, and put together a cumulative total of tax losses - taking into account the $3,000 maximum loss that you were able to claim in each prior year.
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freckles01
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Re: TLH how to keep track of carryover

Post by freckles01 »

Stinky wrote: Wed Apr 07, 2021 3:44 pm
freckles01 wrote: Wed Apr 07, 2021 2:58 pm TLH'd only a few years so hopefully not too much of a mess to clean up.
Did you have tax losses only in 2020? Or did you also have tax losses in years before that?

It seems to me that you'll need to go back to whatever year you began to have tax losses, and put together a cumulative total of tax losses - taking into account the $3,000 maximum loss that you were able to claim in each prior year.
I have losses starting from a few years before 2020, first was on a RBD 12/24, maybe 3 years ago?

But again, do I find my losses from the 1099-B form or from somewhere else??? I can keep my own running tally but just need to know where I find these losses to add up and carryover.
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climber2020
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Re: TLH how to keep track of carryover

Post by climber2020 »

freckles01 wrote: Wed Apr 07, 2021 3:40 pm Do you get your numbers from the 1099-B form under gain/loss? I'm trying to figure out where I'm supposed to get the numbers from or if I'm supposed to compute it myself(hope not :confused).

I've read that some of the smarter folks here find errors from their brokerages and keep their own spreadsheets but they seem like they have spreadsheets for lots of stuff.
The numbers should be on the 1099-B, but another way to look it up is on Vanguard's website.

Log in to your account. At the top, click on the "My Accounts" tab. Then Cost Basis. Then Realized Gains & Losses.

In the drop down box, select the year you wish to search. This will bring up 2 columns: one for short term losses and one for long term. Those should match the numbers on your 1099-B.

In some cases when you put the numbers into your tax software, it may be off by a small amount because everything is rounded to the nearest dollar and those rounding errors can add up. This happened to me this year where there's a one dollar discrepancy between what's on my taxes and my actual losses. I use what's on the tax form to carry over to the following year.
livesoft
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Re: TLH how to keep track of carryover

Post by livesoft »

freckles01 wrote: Wed Apr 07, 2021 4:07 pmBut again, do I find my losses from the 1099-B form or from somewhere else??? I can keep my own running tally but just need to know where I find these losses to add up and carryover.
Realized gains and realized losses are found in your account history online. The 1099-B also shows them for the tax year of the 1099-B. If you file a tax return, then your tax return has the information. Tax-prep software keeps track, too. For HRBlock, you should know enough about using the program that you can see it keeping track for you. You should print out (or at least save to a PDF) your tax return with the worksheets. Hint: Schedule D and its workseets.

Also please read IRS Publication 550.

I realize that I am an old hand at all this, but I do find it funny that people do not worry about other things on their tax return such as "How do I know my tax-prep software got my income right?"
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freckles01
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Re: TLH how to keep track of carryover

Post by freckles01 »

climber2020 wrote: Wed Apr 07, 2021 4:16 pm
freckles01 wrote: Wed Apr 07, 2021 3:40 pm Do you get your numbers from the 1099-B form under gain/loss? I'm trying to figure out where I'm supposed to get the numbers from or if I'm supposed to compute it myself(hope not :confused).

I've read that some of the smarter folks here find errors from their brokerages and keep their own spreadsheets but they seem like they have spreadsheets for lots of stuff.
The numbers should be on the 1099-B, but another way to look it up is on Vanguard's website.

Log in to your account. At the top, click on the "My Accounts" tab. Then Cost Basis. Then Realized Gains & Losses.

In the drop down box, select the year you wish to search. This will bring up 2 columns: one for short term losses and one for long term. Those should match the numbers on your 1099-B.

In some cases when you put the numbers into your tax software, it may be off by a small amount because everything is rounded to the nearest dollar and those rounding errors can add up. This happened to me this year where there's a one dollar discrepancy between what's on my taxes and my actual losses. I use what's on the tax form to carry over to the following year.
OK, thank you for the confirmation about the 1099-B! I'll check out the other way too :sharebeer

As I was getting my paperwork together for 2020 taxes it came to me that I have no idea if I'm supposed to keep a cumulative/running balance for all the TLH I've done over the few years and had a moment of panic, hence this post :oops:

Thank you!
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gobel
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Re: TLH how to keep track of carryover

Post by gobel »

You only need to look at the previous year's Schedule D. On Side Two, if the first number is more negative than -3000, then you will have a carryover of that amount less -3000 (eg if the number is -5000, then you will have a carryover of -2000. If the number is -1000, then you have no carryover.)

Then you also need to know how your carryover breaks down between LT and ST losses. You'd look on Side One to figure that out. If Part I is positive but Part II negative, or vice versa, then your carryover is the type which is negative. If both are negative, then you take up to 3000 from Part I and then any leftover from Part II.

(Note, there are some edge cases where you don't reduce by the full 3000, eg when you have low income near or below your deductions: your other income is 2000 and you have -1000 in losses but 12k in standard deduction. The entire -1000 is carried over to next year.)
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freckles01
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Re: TLH how to keep track of carryover

Post by freckles01 »

livesoft wrote: Wed Apr 07, 2021 4:20 pm
freckles01 wrote: Wed Apr 07, 2021 4:07 pmBut again, do I find my losses from the 1099-B form or from somewhere else??? I can keep my own running tally but just need to know where I find these losses to add up and carryover.
Realized gains and realized losses are found in your account history online. The 1099-B also shows them for the tax year of the 1099-B. If you file a tax return, then your tax return has the information. Tax-prep software keeps track, too. For HRBlock, you should know enough about using the program that you can see it keeping track for you. You should print out (or at least save to a PDF) your tax return with the worksheets. Hint: Schedule D and its workseets.

Also please read IRS Publication 550.

I realize that I am an old hand at all this, but I do find it funny that people do not worry about other things on their tax return such as "How do I know my tax-prep software got my income right?"
Thank you, I'll check out the schedule D worksheets. Honestly, you're giving me too much credit (ha!), I just answer the questions, plug in the numbers and print out what it tells me to.... seeing that may not the best way to go if I want to be more financially literate.

I will read Publication 550.

OMG, I have to worry if the software got my income right too? :confused Is it double checking AGI with the Federal tax rate or something more?

I read in a post somewhere, you found errors in your spouses w-2- totally way beyond my skills :oops:, I can barely understand my paycheck especially since it was "updated" and neither can most of my coworkers- conspiracy theory is that its meant to confuse and they've succeeded.
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freckles01
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Re: TLH how to keep track of carryover

Post by freckles01 »

gobel wrote: Wed Apr 07, 2021 5:14 pm You only need to look at the previous year's Schedule D. On Side Two, if the first number is more negative than -3000, then you will have a carryover of that amount less -3000 (eg if the number is -5000, then you will have a carryover of -2000. If the number is -1000, then you have no carryover.)

Then you also need to know how your carryover breaks down between LT and ST losses. You'd look on Side One to figure that out. If Part I is positive but Part II negative, or vice versa, then your carryover is the type which is negative. If both are negative, then you take up to 3000 from Part I and then any leftover from Part II.

(Note, there are some edge cases where you don't reduce by the full 3000, eg when you have low income near or below your deductions: your other income is 2000 and you have -1000 in losses but 12k in standard deduction. The entire -1000 is carried over to next year.)
Thank you! I pulled out my 2019 tax return and looked over both sides of Schedule D and there's the carryover!

Now I know why no one's asked this question before :mrgreen:

Thank you all for explaining it to me, maybe someone else as green as me might ask this in the future.
dbr
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Re: TLH how to keep track of carryover

Post by dbr »

As above. TurboTax, for example, creates a carryover worksheet which will be loaded into the succeeding year tax return if you keep your tax file and refer your new return to that one to load your data. I don't know if you have to be using the downloaded version of the software. You will at least have the worksheet if you keep a file of all the tax records in TT as well as the tax return per se.

Otherwise you are going to have to maintain your own files.
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Re: TLH how to keep track of carryover

Post by livesoft »

dbr wrote: Wed Apr 07, 2021 6:02 pmOtherwise you are going to have to maintain your own files.
Maintaining your tax-prep software files is maintaining your own files. :twisted:
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dbr
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Re: TLH how to keep track of carryover

Post by dbr »

livesoft wrote: Wed Apr 07, 2021 6:05 pm
dbr wrote: Wed Apr 07, 2021 6:02 pmOtherwise you are going to have to maintain your own files.
Maintaining your tax-prep software files is maintaining your own files. :twisted:
:twisted: :twisted: :twisted: :twisted: :twisted:
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colodane
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Re: TLH how to keep track of carryover

Post by colodane »

Climber2020 gave you good advice about using Vangaurd's "realized gains and losses" section of the website to see the effects of a TLH you have done.

Just want to note that the "unrealized gains and losses" available on the same page are equally useful to know about - but BEFORE you execute a trade rather than after. They can be a very useful planning tool for portfolio management.
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