Capital Gains and Losses - Capital Loss Carryover

You may deduct capital losses up to the amount of your capital gains, plus $3,000 ($1,500 if married filing separately). If part of the loss is still unused, you can carry it forward to later years until it is completely depleted. This "unused loss" includes any amount appearing on Line 7 of IRS Form 1040 U.S. Individual Income Tax Return that is not of benefit to the bottom line of the return. While the amount will appear on that line, the worksheet calculation will take into account that the amount is not actually being used in the current year, and the entire amount will transfer through the worksheet to the following year when import is done from one year to the next.

Any capital loss carryover to the following tax year will be calculated in TaxAct®, and if the return is imported to the following year's return, the amount will automatically be transferred.

For additional information, go to IRS Instructions for Schedule D Capital Gains and Losses or IRS Publication 550 Investment Income and Expenses (Including Capital Gains and Losses).

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.