Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
How to correct schedule D capital loss carryover which doesn't show any changes on 1040x
Posted by: Jane Austin, March 20, 2009 12:10PM
I discovered I made a mistake on the capital loss carryover in 2007. I would like to amend this amount on the schedule D, but because both the old incorrect loss and the new correct loss are both a lot more than the $3000 you are allowed to use up each year, it doesn't actually change the taxes I owed in 2007.

So, when I fill out 1040X there are no changes anywhere that show up on that form. I was thinking of just filling out the 1040X, writing a note on the bottom and sending in the amended schedule D. But will the IRS not be able to handle the fact that the 1040X shows no changes at all?

Would I be better off just adding a note to my 2008 return, and correcting it on this year's schedule D?

This is a great website and wonderful forum, it has helped me so much on other issues!

Re: How to correct schedule D capital loss carryover which doesn't show any changes on 1040x
Posted by: rbotterb, March 20, 2009 06:37PM
Send in the 1040X with the updated SCH D and in the text on the changes just indicate that you were correction SCH D calculations and send it in. Also send in amended state return too even though there won't be changes in taxes. That way you, the IRS, and your state rev dept are on the same page.

Also if you are using tax software, the amended return will update its Cap Loss carryover information so when you do your 2009 return it will be using the new corrected information.

Roger


Re: How to correct schedule D capital loss carryover which doesn't show any changes on 1040x
Posted by: Jane Austin, March 20, 2009 07:23PM
Thanks so much Roger,

That's what I'll do.



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