Raj1
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My Question/s about “Defer” Cap Loss offset of $3,000

Thanks and Update

April 7, 2020

Thanks for your time and help.

I think my question was lacking some clarity.

The Tax Payer (without any cap loss of $3,000 out of total cap loss of $8,000 for 2019) has below taxable income for 2019 and wants to find out:

Does he have the option of not having -3,000 in line 6 of 1040 in 2019, so that he can carry forward the entire cap loss of $8,000 (instead of just $5,000) to 2020 when he is supposed to have far greater taxable income and can really get the benefit of this larger carry forward against 2020 cap gains and/or cap loss offset of $3,000 in 2020.

Form 1040 Line 6 is fed by Line 21 of Sch D which cannot be altered except via Override making the tax return ineligible for EFile.

I think there does not seem to be an issue with Pro Series but it is the IRS Rule which forces to have the cap loss offset of $3,000 in 2019 whether the Tax Payer wants it or not.  There is some reference to this in Pub 550 but just want to get opinion of the community.

Any thoughts / clarifications / updates would be highly appreciated.

Thanks and Regards.

Raj1

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