Capital loss vs std deduction
As a senior citizen my standard deduction is more than enough to reduce my AGI . do I still have to use my excess Capital losses and or carryover on my US1040 and use that Capital loss up to $3,000 first?
Terry Says
This from Intuit Turbo Tax:
Yes the capital loss is separate from the Standard Deduction. You can get both.
If you have investment sale losses, after you subtract the losses from your gains you can only deduct up to 3,000 (1,500 MFS) per year. The rest you will have to carryover until it is used up. You can’t skip a year.
If it didn’t transfer over from last year then
Enter a Capital Loss Carryover under
Federal Taxes or Personal (Home & Business)
Wages and Income
Then scroll down to Investment Income
Capital Loss Carryovers – Click Start or Revisit
But if you have a negative AGI or negative taxable income it will show up on 1040 BUT it won’t reduce the carryover to the next year.
