You need to use the data from last year's return and complete the Capital Loss Carryover worksheet in this year's Schedule D instructions. Once the allocation between carryover long- and short-term losses is complete, you enter the short-term and long-term carryover losses on the applicable lines of Form 1040 Schedule D.
Articles in this section
- How does selling your home for a profit affect the income you report and your tax liability?
- I am married and our house when sold will net about $400,000 in profit. We have lived here for 30 years. If I die before the house is sold, does my spouse lose the $250,000 exemption for me?
- If I sell shares in a mutual fund and reinvest the proceeds in another fund from the same fund family, do I have to pay tax on any gain?
- Last year I had some capital losses that exceeded the $3,000 maximum allowed. How do I get to use the remaining losses?
- I invested in a company, and now all my shares are worthless. Can I carry the loss forward to coming years, or must I claim the loss this year?