Capital Loss Carryover

Tax Slayer Carryover problems

Capital Loss Carryover may or may not work correctly, so do not trust TSO to bring it forward. Verify it from last year's return and ensure the correct amount is carried over to this year's return. If the carryover exceeds $3,000, the amount above $3,000 is carried forward to next year's tax return.

Sales and Dispositions of Capital Assets are recorded on Form 8949.

Capital Gains and Losses are calculated on Schedule D.

If there is carryover to the next tax year, use a colored highlighter marker to highlight the amount on the printed tax return and make sure the taxpayer is aware of the amount.

Keep Short-term and Long-term Separate

When combining this year's Capital Loss(es) with prior year Capital Loss Carryover(s), keep short-term separate from long-term. Print and use the following worksheet (from Schedule D instructions) to record the calculations you perform to determine entries for the tax return. Include the completed worksheet in the client's paperwork.

Click the image for a full-size printable image.