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Capital Loss Carryover Calculator$3,000 Limit and Short or Long Character

What do these figures come to once the work is shown?

Capital loss deduction against ordinary income and the short-term and long-term carryover to next year under IRC 1211(b) and 1212(b).

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Your figures
Example figuresIllustrative only. Type over them with your own.
Total carryover to next year
$9,000
Keeps its short-term or long-term character
Capital loss deduction against ordinary income
$3,000
Short-term loss carryover
$0
Drawn to one scale
Capital loss deduction against ordinary income$3,000
Short-term loss carryover$0
Long-term loss carryover$9,000
Total carryover to next year$9,000
All results
MeasureResult
Capital loss deduction against ordinary income$3,000
Short-term loss carryover$0
Long-term loss carryover$9,000
Total carryover to next year$9,000
How this was worked out
Work shownrecomputed as you type
Net loss = -(net short-term + net long-term) when negative
Deduction = lesser of net loss and $3,000 ($1,500 married filing separately)
Treated as a short-term gain for carryover = lesser of the deduction and adjusted taxable income
Short carryover = net short-term loss - net long-term gain; long carryover = net long-term loss - net short-term gain

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Net loss = -(net short-term + net long-term) when negative
  • Deduction = lesser of net loss and $3,000 ($1,500 married filing separately)
  • Treated as a short-term gain for carryover = lesser of the deduction and adjusted taxable income
  • Short carryover = net short-term loss - net long-term gain; long carryover = net long-term loss - net short-term gain

How it works

Under section 1211(b), capital losses offset capital gains in full and then ordinary income up to $3,000 a year ($1,500 if married filing separately). Any excess carries forward indefinitely under section 1212(b), and it keeps its short-term or long-term character.

Section 1212(b)(2) treats the deduction you used as a short-term gain when working out the carryover, limited by adjusted taxable income. That ordering uses up short-term losses first. Adjusted taxable income is taxable income increased by the capital loss deduction and any section 151 deduction.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Do I enter carryovers from earlier years?

Yes. Include carryovers in the short-term and long-term net amounts.

Is there a time limit?

Section 1212(b) carries the loss to the succeeding year and the same rule repeats each year, so there is no expiration in the text.

What if I have both gains and losses?

Enter the net short-term and net long-term amounts after netting within each group.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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