Capital Loss Carryover

 

If you sold stock or mutual funds at a loss, you can use the loss to offset capital gains you had from similar sales. If the net amount of all your gains and losses is a loss, you can report the loss on your return.

You can report current year net losses up to $3,000 — or $1,500 if married filing separately. Carry over net losses of more than $3,000 to next year’s return. You can carry over capital losses indefinitely.

Figure your allowable capital loss on Schedule D and enter it on Form 1040, Line 13.

If you have an unused prior-year loss, you can subtract it from this year’s net capital gains. You can report and deduct from your income a loss up to $3,000 — or $1,500 if married filing separately.

Related Topics

Related Resources

Understanding Your Closing Disclosure | H&R Block

What is a closing disclosure? When you buy a house, you will receive a closing disclosure that can benefit you at tax time. Learn more at H&R Block.

How is Taxable Income Determined?

Determining your taxable income is an important part of filing taxes. Learn how calculate your taxable income with the experts at H&R Block.

Tax Questions, Answered: The Tax Implications Of Selling Your Home

If you make a profit on the sale of your home, the gain may not be taxable. Learn more about the tax implications of selling a house with the experts at H&R Block.

Capital Gains Tax On Real Estate

Learn more about capital gains tax on real estate with advice from the tax experts at H&R Block.