I have a friend's last year's tax return (form 1040) and I am trying to enter the capital loss carryover information into the current year's tax return in Proconnect. The last year's return only includes Schedule D and Form 8949 for the stock sale. How do I know the last year's capital loss is short-term or long-term?
For last year's tax return/ schedule 😧 had a net short-term capital loss ($1864), and net long-term capital loss ($1486). The combined capital loss from last year's return was ($3350). Now how do I know if the remaining ($350) is a short-term or long-term capital loss carryover? Proconnect asks me to input "short-term" or "long-term".
Thank you!
Best Answer Click here
Use the capital loss carryover worksheet:
https://www.irs.gov/instructions/i1040sd#en_US_2022_publink24331id0e493
If the cap losses are the only items on the return last year, nothing would have been allowed, which means the carryovers for LTCL and STCL are just what you saw on last year's return.
Use the capital loss carryover worksheet:
https://www.irs.gov/instructions/i1040sd#en_US_2022_publink24331id0e493
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