From IRS Publication 550: "If you have a total net loss on line 16 of Schedule D that is more than the yearly limit on capital loss deductions, you can carry over
the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still unused, you can carry it over to later years until it
is completely used up."
Perhaps I missed it, but I can find no mention that a CG carryover loss MUST be used against gains the next year. Seems I can elect to not use a carryover, in which case the rules do state that any unused amount can by carried to future years. FWIW, I've done such extended carryovers in the past and the IRS did not complain.
Heck, it is in your post...
"you can carry over the unused part to the NEXT year" (not two years from now) "If part of the loss is STILL unused, you can carry it over to later years"... seems pretty simple to me..
As MichaelB pointed out.... notice how it states if you have a loss you must enter it on the form...
Capital Loss Carryover Worksheet—Lines 6 and 14
Keep for Your Records
28% Rate Gain Worksheet—Line 18
Keep for Your Records
Use this worksheet to figure your capital loss carryovers from 2010 to 2011 if your 2010 Schedule D, line 21, is a loss and
(a) that loss is
a smaller loss than the loss on your 2010 Schedule D, line 16, or (b) the amount on your 2010 Form 1040, line 41 (or your 2010 Form
1040NR, line 39, if applicable) is less than zero. Otherwise, you do not have any carryovers.
If you and your spouse once filed a joint return and are filing separate returns for 2011, any capital loss carryover from the joint return
can be deducted only on the return of the spouse who actually had the loss.
1.
Enter the amount from your 2010 Form 1040, line 41, or your 2010 Form 1040NR, line 39. If a loss,
enclose the amount in parentheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the loss from your 2010 Schedule D, line 21, as a positive amount . . . . . . . . . . . . . . . . . . . . . 2.
3. Combine lines 1 and 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the smaller of line 2 or line 3 . . . . . . . . . . . . . . . . . . 4.
If line 7 of your 2010 Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to
line 9.
5. Enter the loss from your 2010 Schedule D, line 7, as a positive amount . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter any gain from your 2010 Schedule D, line 15. If a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Add lines 4 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Short-term capital loss carryover for 2011. Subtract line 7 from line 5. If zero or less, enter -0-. If
more than zero, also enter this amount on Schedule D, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13.
9. Enter the loss from your 2010 Schedule D, line 15, as a positive amount . . . . . . . . . . . . . . . . . . . . . 9.
10. Enter any gain from your 2010 Schedule D, line 7. If a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . 11.
12. Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Long-term capital loss carryover for 2011. Subtract line 12 from line 9. If zero or less, enter -0-. If
more than zero, also enter this amount on Schedule D, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Now, say you do NOT put down your loss for 2011... then for 2012 you do not have ANY loss carryforward since you did not put anything down on your return.... the starting point is the PY return, not two years prior... and 2011 had a gain... (add a year to all the above if you want to use it for 2013).