Question about capital gains

[GeorgeM]

Client has a net capital loss of $1300.00, only income is $2000.00 on W2 and $1800.00 SS income.

To report the sales of stock Schedule D has to be files.

The Schedule D flows through to the 1040. But he can't use it due to not enough income.

I have looked and cannot find where he can keep this loss for future years.

Can someone tell me where I can find out if he can use this in future years or not.

Thank you

[Joel]

George,

The unused capital loss is carried over to 2009. On sch D check the lower left of the screen for the list of worksheets. It should be there.

[RoyDaleOne]

Looks like the taxpayer is not going to have a capital loss carryforward.

[Don in Upstate NY]

Client has a net capital loss of $1300.00, only income is $2000.00 on W2 and $1800.00 SS income.

Looks like the taxpayer is not going to have a capital loss carryforward.

Disagree. Carryover worksheet should show the whole 1300 loss being carried to next year.

[michaelmars]

don is right, if the cleint gets no benifit of the $3000 deduction, the entire amount is carried over to next year.

[Kea]

I have a similar situation. I am using TaxWise, but was able to find the carryforward worksheet. It looks like it is calculating correctly to carryforward the entire loss. But the $3000 loss is still showing on line 13 of the 1040. Is that correct? Or, should line 13 be $0 since it will all be carried to 2009?

Thanks

[David1980]

It is correct to show it on the 1040. Think of it this way, by reporting the loss you show that it was incurred and have something to show for where the loss came from next year when you do the carryforward. The worksheet (available in Schedule D instructions) is smart enough to calculate the carryforward amount even though it's already showing.

I know it "feels" like you're taking it twice, but not really and the IRS worksheet is smart enough to figure that out.

[Kea]

Silly me, then. I figured that showing the $10,000 loss on Schedule D would be enough to show IRS where the carryforward loss came from! But if it makes IRS happy to see it on the 1040, I'm OK with that. I'm just going to make sure that whatever software I use next year carries over the entire amount. (Granted, I would do that anyway.)

Thanks so much.