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Capital Loss Carried Over
Old 02-27-2014, 09:52 PM   #1
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Capital Loss Carried Over

To show you how good a stock picker I am. I now have capital losses that had stemmed from my positions in GM (total loss) and SUNW. I have over $15000 to be carrired over from 2012. But in 2013, I incurred some more capital loss when a covered call I sold was called away at below my cost. The capital loss from that reduced my capital gain to a few thousand dollars for 2013. I want to just apply only $3000 from my carry over towards the offset, because the rest of my income in ER would put me at zero LTCG, but TurboTax used up most of the available capital loss carry over to offset capital gain in 2013, and I cannot figure out a way to enter just a $3000 capital loss carry over so I can preserve the capital loss for carrying over to future years. Is the tax rule such that when there is a capital gain of more than $3000, the amount will be completely offset by capital losses from previous years, and you cannot just elect to take only $3000 for the year? Thanks for enlightening me.

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Old 02-27-2014, 10:59 PM   #2
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You are correct that you do not have discretion as to how the carryover loss gets used. It get used following IRS rules, Sch D, the capital gains/QDIV worksheet, etc.

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Old 02-27-2014, 11:12 PM   #3
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This is a bit picky, but technically you are not required to use the carryover loss.

However, if you do not use the carryover loss, you are not allowed to carry it forward to future tax years.

So it is best to use it.
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Old 02-27-2014, 11:16 PM   #4
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Thanks for explaining the rules to me.
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