Why are Section 1231 Loss Carryovers showing up on the carryover form when they have been used in prior years?

Forum|Forum|6 years ago
December 7, 2019
2 replies
14 views

Why are they still showing up when it shows they were used on the Form 4797 for the years in questions ??

ProSeries Professional

This topic has been closed for replies.

Best answer by itonewbie

If you're certain it's been caught up and you don't see this being a problem on multiple returns, I'd make the adjustment and call it a day. If it's any consolation, I don't recall others raising this as a problem on this board.

If you want to know why, you will need to contact Support and they'd probably ask to see the return, then take time to diagnose, and may eventually come back with an inclusive answer.

itonewbieAnswer

Level 15

If you're certain it's been caught up and you don't see this being a problem on multiple returns, I'd make the adjustment and call it a day. If it's any consolation, I don't recall others raising this as a problem on this board.

If you want to know why, you will need to contact Support and they'd probably ask to see the return, then take time to diagnose, and may eventually come back with an inclusive answer.

---------------------------------------------------------------------------------Still an AllStar

rbynaker

Level 13

Are you talking about these (attached)?

This is where ProSeries tracks the last 5 years worth of 1231 losses. The short answer, it's an IRS anti-abuse rule that prevents you from using losses from one year to offset regular income at regular tax rates and then using gains in any of the five subsequent years to get capital gains tax rates. Future gains are taxed at ordinary tax rates to the extent of your 1231 losses in the five preceding years. This is where ProSeries tracks those amounts. If that's what you're asking about, don't delete them, they may be necessary in order to prepare an accurate return in the future.

itonewbie

Level 15

Thought the OP says it's all caught up.

---------------------------------------------------------------------------------Still an AllStar

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