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electing not to use capital losses carried forward

Ronsraspberries
Level 2

I have carry forward capital losses that I don't want to use this year because my income is such I pay 0% on capital gains and qualified dividends (ordinary income below threshold to pay tax on them).  I don't see where I am required to use them this year, while still being eligible to use them in future years.  Mechanically, Proseries does not allow for such a switch of using them or not, but that can be gotten around by adjusting the capital loss carry forward.

Is anything in the law giving me that choice?

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19 Comments 19
abctax55
Level 15

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.


 

"Tax software is no substitute for a professional tax preparer"
Just-Lisa-Now-
Level 15
Level 15
You either carry them forward or carry them back, you cant just skip a year and save them for when you need them.

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

I'm good with that.  You reminded me that the schedule D has the carry forward documented so messing with it doesn't work.  Sometimes one needs to step back and revisit what at first looks like a gift.  I'll take the no tax on qualified dividends until the next change in the tax law.

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Heather1111
Level 2

Lisa-Just-Now- Why not?  If you don't need them, you don't need them.  

FYI (A tax loss carryforward allows taxpayers to use a taxable loss in the current period and apply it to a future tax period. Capital losses that exceed capital gains in a year may be used to offset ordinary taxable income up to $3,000 in any future tax year, indefinitely, until exhausted.)

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Heather1111
Level 2

The poster asked a question about ProSeries which is a Tax Professional program.  

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Heather1111
Level 2

Look it up

 

 

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sjrcpa
Level 15

Doing what you suggest would be wrong.


Ex-AllStar
Just-Lisa-Now-
Level 15
Level 15
"if there isn't $3,000 in ordinary taxable income to offset, you don't have to waste them like ProsSeries makes you do"

It doesnt waste them, if they cant be used it carries forward.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
Level 15

@Heather1111 

1)  like ProsSeries makes you do"   It's not ProSeries... it's the IRC (tax code).

2) Hope your E&O insurance is up to date as what you are proposing is violating the tax laws.

"Tax software is no substitute for a professional tax preparer"
Ronsraspberries
Level 2

It was a question, not a proposal. What I'm guilt of is not doing enough due diligence. Thank you all for setting me straight. There are times we all wish the laws were different but our is to follow them, not to make them up.

qbteachmt
Level 15

Does Heather realize she updated a topic from a different tax year? You know that tax rules can change, so it helps to notice which tax year for which rules, when working on a tax return and relying on a public internet forum or article. Dates matter.

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"Level Up" is a gaming function, not a real life function.
sjrcpa
Level 15

@Ronsraspberries - the it would be wrong, etc comments were directed at Heather, not you.

You had a legitimate question. She had a wrong answer/solution.


Ex-AllStar
Heather1111
Level 2

This went to the wrong comment. 

itonewbie
Level 15

@Just-Lisa-Now- wrote:
You either carry them forward or carry them back, you cant just skip a year and save them for when you need them.

@Just-Lisa-Now- Think you probably didn't mean to say that the OP can carry back the cap loss.  With references being made by the OP to "I" and "my", I would surmise the question is related to an individual return.  That would mean §1212(b) instead of (a) is the governing provision and only carryforward is permissible, except in the case of §1256 contracts.

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Still an AllStar
Ronsraspberries
Level 2

I am impressed and think I've found my tribe. Heather, while I am impressed by your technical accum in working around the software limitations and if my moral compass was not what it is, I'd consider your advice. My own code of conduct prevents me from stepping over the red line. 

Just-Lisa-Now-
Level 15
Level 15
youre right, I blew it on that comment, I was thinking NOL

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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itonewbie
Level 15

@Just-Lisa-Now-, lol.  Just wanted to make sure I didn't miss anything and that others who stumble upon this thread later on wouldn't get the wrong idea. 😅

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Still an AllStar
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Heather1111
Level 2

Get over yourself. It's an in-house form.  The tax return bottom line stays the same.  

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qbteachmt
Level 15

Geez, @Heather1111 This is posting in a topic that has been dead for 14 months and you resurrected the zombie. People have tried to be helpful, but, "Get over yourself. It's an in-house form." is really out of place. Tell it to Congress, because the IRS has to put in place what Congress gets passed into law.

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"Level Up" is a gaming function, not a real life function.
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