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

Obtaining An IRS Wage And Income Transcript

Do you need to get a copy of your wage and income transcript from the IRS? Learn more from the tax experts at H&R Block.

Education Savings Accounts

What are education savings accounts, and how do they affect your taxes? Discover more about ESAs and get tax answers at H&R Block.

Vacation Home Rental Tax Rules

Learn more about the tax rules for renting your vacation home for part of the year from the experts at H&R Block.

Bitcoin, Taxes, and the Modern Entrepreneur

Many entrepreneurs find themselves wondering exactly how Bitcoin is taxed. Our H&R Block Tax Pros are prepared to assist self-employed filers with Bitcoin taxation.