Schedule D Question

[GeorgeM]

I have a client who for the year 2009 has a capital loss carryover, and only income of $11,050.00 which he will have no tax on.

Do you still have to show the $3,000.00 loss on line 13 and reduce his carryover for 2010?

Thank you

[TAXBILLY]

He may not have to use it because of the taxable income as adjusted rule.

I would put it on a 1040 and see the results.

taxbilly

[michaelmars]

put it on the 1040, the program will not reduce the carryover for any portion of the 3000 not needed.

[GeorgeM]

It is not needed due to no taxable income, but what to do.

The program puts the $3000 on the 1040.

Should I override it with a -0- and override the schedule D.

[grandmabee]

NO don't override. Look at the carryover schedule on D

[kcjenkins]

No, you do not override it. It is proper to put it on the 1040, even though it will not be used. It will all carry over, as you can see on the NOL worksheet at the bottom where it shows the carryover amount.