Capital Loss Carry Forward

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Topic Author
student
Posts: 4070
Joined: Fri Apr 03, 2015 6:58 am

Capital Loss Carry Forward

Post by student » Mon Feb 11, 2019 12:29 pm

Last time I needed this was about 10 years ago so I do not remember the exact procedure. This year I have
a) $15,000 short term capital loss
b) $8,000 long term capital gain

So I have a net capital loss of $7,000. I am eligible for a $3,000 loss against my regular income this year. This leaves $4,000 for the future. I do not see this $4,000 number on Schedule D. May I assume that for next year, I will need these numbers ($15,000, $8,000, $7,000 and $3,000) to fill out the capital loss carryover worksheet next year.

Thank you.

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BolderBoy
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Re: Capital Loss Carry Forward

Post by BolderBoy » Mon Feb 11, 2019 12:34 pm

student wrote:
Mon Feb 11, 2019 12:29 pm
Last time I needed this was about 10 years ago so I do not remember the exact procedure. This year I have
a) $15,000 short term capital loss
b) $8,000 long term capital gain

So I have a net capital loss of $7,000. I am eligible for a $3,000 loss against my regular income this year. This leaves $4,000 for the future. I do not see this $4,000 number on Schedule D. May I assume that for next year, I will need these numbers ($15,000, $8,000, $7,000 and $3,000) to fill out the capital loss carryover worksheet next year.
Are you using tax prep software or doing this by hand?
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NotWhoYouThink
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Joined: Fri Dec 26, 2014 4:19 pm

Re: Capital Loss Carry Forward

Post by NotWhoYouThink » Mon Feb 11, 2019 12:59 pm

The instructions for Schedule D should point you to a capital loss carry forward worksheet that you fill out and keep for your records for 2019 taxes.

stocknoob4111
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Re: Capital Loss Carry Forward

Post by stocknoob4111 » Mon Feb 11, 2019 1:08 pm

interested in this as well since I have the same situation... so to clarify, the loss carryover amount is not actually filed but just for personal records correct?

livesoft
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Re: Capital Loss Carry Forward

Post by livesoft » Mon Feb 11, 2019 1:11 pm

student wrote:
Mon Feb 11, 2019 12:29 pm
May I assume that for next year, I will need these numbers ($15,000, $8,000, $7,000 and $3,000) to fill out the capital loss carryover worksheet next year.
Yes. That is the same as writing, "May I assume that for next year, I will need my 2018 Form 1040 Schedule D to fill out ...?" because all those numbers are on Schedule D, are they not?
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Topic Author
student
Posts: 4070
Joined: Fri Apr 03, 2015 6:58 am

Re: Capital Loss Carry Forward

Post by student » Mon Feb 11, 2019 1:23 pm

BolderBoy wrote:
Mon Feb 11, 2019 12:34 pm
student wrote:
Mon Feb 11, 2019 12:29 pm
Last time I needed this was about 10 years ago so I do not remember the exact procedure. This year I have
a) $15,000 short term capital loss
b) $8,000 long term capital gain

So I have a net capital loss of $7,000. I am eligible for a $3,000 loss against my regular income this year. This leaves $4,000 for the future. I do not see this $4,000 number on Schedule D. May I assume that for next year, I will need these numbers ($15,000, $8,000, $7,000 and $3,000) to fill out the capital loss carryover worksheet next year.
Are you using tax prep software or doing this by hand?
I am using tax software but I would also like to learn the details.

Topic Author
student
Posts: 4070
Joined: Fri Apr 03, 2015 6:58 am

Re: Capital Loss Carry Forward

Post by student » Mon Feb 11, 2019 1:24 pm

livesoft wrote:
Mon Feb 11, 2019 1:11 pm
student wrote:
Mon Feb 11, 2019 12:29 pm
May I assume that for next year, I will need these numbers ($15,000, $8,000, $7,000 and $3,000) to fill out the capital loss carryover worksheet next year.
Yes. That is the same as writing, "May I assume that for next year, I will need my 2018 Form 1040 Schedule D to fill out ...?" because all those numbers are on Schedule D, are they not?
Yes. All these numbers are on Schedule D. I just want to make sure that I do not need anything else. Thanks.

boomer_techie
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Joined: Fri Jan 18, 2019 6:47 am

Re: Capital Loss Carry Forward

Post by boomer_techie » Mon Feb 11, 2019 5:16 pm

NotWhoYouThink wrote:
Mon Feb 11, 2019 12:59 pm
The instructions for Schedule D should point you to a capital loss carry forward worksheet that you fill out and keep for your records for 2019 taxes.
Agreed!

The worksheet in the (current) Schedule D instructions is to calculate the loss carryforward from 2017 into 2018. However, this worksheet isn't something that changes year to year. Just go through the worksheet and bump up the year numbers by one - i.e. where it says 2017, substitute 2018. Then plug your numbers in and calculate your carryforward to 2019.

Edit: Just checked. The worksheet calls for 2017 Form 1040 line 41, which is AGI after deductions are subtracted but before exemptions are subtracted. As exemptions have been eliminated for 2018, "next year's" worksheet will likely ask for (2018 Form 1040 line 7) minus (2018 Form 1040 line 8).

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