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Capital Loss Carryover

TJFERG
Level 2

My clients sold stock in 2018 and incurred a loss.  The entire loss was claimed in 2018, however for some reason ProSeries is continuing to carry that loss over to 2019 and 2020 in the exact same amount.  Can someone tell me why this is happening and how to correct it?

 

Please and thank you!

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8 Replies 8
Just-Lisa-Now-
Level 15
Level 15
was it able to be utilized in 2018?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TJFERG
Level 2

Yes and then entire amount was claimed in 2018 as it was less than $1,000.  Now we are going to have to file an amended return for 2019 because for some reason the software carried that loss forward to 2019 and also 2020, which thankfully it was caught this year.  I'm just trying to understand why the software is doing that.  

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Just-Lisa-Now-
Level 15
Level 15
But did they end up at negative income after that $1000 loss in 2018? If you cant use the loss, I think it keeps carrying over. Look at the Carryover Worksheet in 2018 and 2019.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TJFERG
Level 2

After the standard deduction (because they do not itemize) the did not have any taxable income.  Is that why it's continuing to roll to the next year?

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Just-Lisa-Now-
Level 15
Level 15
Yes, I believe thats whats happening.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Just-Lisa-Now-
Level 15
Level 15
Would it still have been zero taxable income even without the loss? If so, it wasnt utilized and thats why its carrying over each year.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
TJFERG
Level 2

Yes, even without this loss, they would have had zero taxable income.  This makes sense now.  Thanks so much for your time.

Just-Lisa-Now-
Level 15
Level 15
Youre welcome

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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