Long / Short-Term Capital Gains / Losses

What happens if my losses are larger than my gains in any tax year?

If your losses are greater than your gains, you may claim the lesser of either $3,000 ($1,500 if you are married filing separately) or your total net loss as shown on line 16 of IRS Form 1040, Schedule D. If your net capital loss is more than this limit, you may carry the loss forward to later years. Please use the Capital Loss Carryover Worksheet found in either IRS Publication 550, “Investment Income and Expenses”, or IRS Form 1040, Schedule D Instructions, “Capital Gains and Losses”, to figure the amount eligible to carry forward.


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