Capital Loss

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  • #2140
    mike_stan
    Participant

    I have a $5,000 capital loss carry over from 2017 to 2018. I also have an additional capital loss of $4,000 for 2018. The total loss $5,000 + $4000 would total $9000.

    My income for the year 2018 is only $7,200. Looks like the $3000 loss is applied before the standard deduction is taken off. So my income appears as $4200 before the $12,000 standard deduction is applied for a single person. How do I not apply it for 2018? Thought I still have to complete schedule D.

    Or do I have to use $3000 of that $9,000 to deduct for 2018 as a capital loss or does that $3000 roll over to 2019 since I have no taxable income. Thought it would it be smarter to hold the $9000 and carry it over to 2019 when I expect to make around $50,000 in income?

    • This topic was modified 2 years, 8 months ago by mike_stan.
    • This topic was modified 2 years, 8 months ago by mike_stan.
    #2143
    Kaye Thomas
    Moderator

    You don’t get to choose the year in which to use a capital loss. However, you’ll get to carry over the entire $9,000 to 2019, even though you’re showing a $3,000 capital loss deduction on your 2018 tax return. See the following page for an explanation.

    Capital Loss with Little or No Income

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