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lt capital loss carryover not being reduced by prior year usage

1040 2018 LT capital loss carryover = 4,669. 2019 1040 used 3000 of it, 2020 used 3000.  Program never reduced carryover in 2019 or 2020 and i cannot remove it from tax return for 2021. Why?? 

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4 Comments 4
rbynaker
Level 13

Maybe because the capital loss was not used because taxable income was already negative?

Look at the prior year capital loss carryover worksheets to see how the numbers work.  Back in the day this used to be a "Line 41" based calculation, now they change the line numbers every year and we don't have to care about personal exemptions.

Yes, taxable income negative. Can you provide a reference where i can read about capital loss carry over when taxable income negative?  Is there an IRS publication? IRS code section?

Thank you

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Accountant-Man
Level 12

It's common knowledge.

** I'm still a champion... of the world! Even without The Lounge.
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rbynaker
Level 13

I think ProSeries models their capital loss carryover worksheet after the one in the Schedule D instructions:

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

Page D-11 (2021).