Short Term Loss Carryover

[Dave T]

New client in 2021, full time student with nominal earned income  ($230) in 2021 and clamed as a dependent.

In 2021 he was in the market and generated a short term loss of $2k.  Perhaps I am overthinking this or more likely not thinking correctly but his 2021 standard deduction of $ 1100 was greater than his earned income so shouldn't his loss be carried forward to 2022 ?  

In 2022 he is still a full time student but instead earns $ 8K in short term gains and I am wondering if these should be offset from the prior year loss? 

Not sure how this is going to play out as he is going to have file form 8615 and Mom made quite a bit in 2022.

This is a new one on me so appreciate the help

Dave T

 

 

[mcb39]

There is a Capital Loss Carryover Loss Worksheet.  See Schedule D

[Dave T]

Yes, I was working through it but it doesn't seem to calculate a carryover yet it seems as if it should.

 

 

[DANRVAN]

6 hours ago, Dave T said:

Yes, I was working through it but it doesn't seem to calculate a carryover yet it seems as if it should.

 

 

I don't see why not.  Looks like line 1 should be negative 2,870,  Then lines 2,5, and 8 should = 2,000.  As those numbers should appear on the 2021 worksheet.