# Capital loss carryover **URL:** \ **Category:** Factual Questions\ **Created:** [April 13, 2013, 9:55pm UTC](https://boards.straightdope.com/t/capital-loss-carryover/655638 "2013-04-13T21:55:40Z")\ **Posts on this page:** 4\ **Page:** 2
**Author:** ![LynnM](https://avatars.discourse-cdn.com/v4/letter/l/b2d939/32.png) [@LynnM](https://boards.straightdope.com/u/LynnM)\ **Post date:** [April 15, 2013, 5:44pm UTC](https://boards.straightdope.com/t/capital-loss-carryover/655638/21 "2013-04-15T17:44:57Z")
Alley Dweller “You are right that by the time you get to line 43 of Form 1040, you will enter a 0 there and the value on line 41 won’t affect the rest of the form. But the negative number on line 41 is needed to calculate how much carryover you have available for the next year.” Yes, _that_ is the essential thing I didn’t get. Taxpayer reads 1040 line 41 instruction: “Subtract line 40 from line 38.” Result: a negative number. Taxpayer understands negative numbers as re capital gains(+) and losses(-), but the negative seems incongrous here, for calculating tax. Especially since the instruction for line 43 instructs taxpayer to enter zero for line 43, if the calculated result was negative. One tends to think the same would apply to line 41. So in the absence of instructions, taxpayer enters zero. In effect, the taxpayer thinks “locally,” with line 41 applying to the immediate tax calculation; taxpayer is not aware of the linkage between this negative number and capital-loss carryover calculations. That was my problem. I’d have avoided this confusion if the line 41 instructions included: “If the result is a negative number, enter the (negative number).” Thx to all– ---
**Author:** ![Apopkasux](https://avatars.discourse-cdn.com/v4/letter/a/90db22/32.png) [@Apopkasux](https://boards.straightdope.com/u/Apopkasux)\ **Post date:** [March 30, 2014, 4:26am UTC](https://boards.straightdope.com/t/capital-loss-carryover/655638/22 "2014-03-30T04:26:14Z")
> [@What\_the](#): > > I don’t think so … > > My reference book says that a capital loss is carried forward if either > > 1. the total loss is greater than 3000, or > > 2. the amount shown on line 41 (AGI minus deductions but before exemptions) is less than zero > > … I’m not addressing your situation specifically but there appear to be instances in which you don’t have to use up $3000 every year. * * * What the …!!!, I’m in the very situation you describe in #2 above, but am trying to find somewhere in the Schedule D directions (other than the worksheet) where it says what you said in #2. Does your reference book give a code section where one could find this…or if you don’t mind, what is the reference book and where in there did you find this. I’m just looking for something official to print off and keep w/ my taxes. Thanks. ---
**Author:** ![LynnM](https://avatars.discourse-cdn.com/v4/letter/l/b2d939/32.png) [@LynnM](https://boards.straightdope.com/u/LynnM)\ **Post date:** [March 30, 2014, 8:36pm UTC](https://boards.straightdope.com/t/capital-loss-carryover/655638/23 "2014-03-30T20:36:23Z")
> [@Apopkasux](#): > > * * * > > What the …!!!, > > I’m in the very situation you describe in #2 above, but am trying to find somewhere in the Schedule D directions (other than the worksheet) where it says what you said in #2. Does your reference book give a code section where one could find this…or if you don’t mind, what is the reference book and where in there did you find this. I’m just looking for something official to print off and keep w/ my taxes. > > Thanks. Goodness-I’ve been resurrected, just in time for my 2013 tax return. I’ve locked into **Alley Dweller** ’s patient explanation, and I think I get it [still]; but I too would be interested in **What the … !!!**'s reference source. ---
**Author:** ![wellanuff](https://avatars.discourse-cdn.com/v4/letter/w/57b2e6/32.png) [@wellanuff](https://boards.straightdope.com/u/wellanuff)\ **Post date:** [March 31, 2014, 10:32pm UTC](https://boards.straightdope.com/t/capital-loss-carryover/655638/24 "2014-03-31T22:32:42Z")
Hey Lynn, I have been in your situation. I really would recommend that you start to use one of the major tax prep software programs. If you stay with the same program year after year (that is why I said “major”), it keeps track of things like capital loss carryovers for you from year to year to year. It will handle the situation you describe correctly, without you having to try to figure it out. I know they can seem kind of steep at $40 or $50, but sometimes you can find a deal and I feel it is worth it not trying to decipher the worksheets. The programs are really simple to use, especially if you are already familiar with the tax forms and what the specialized terms (like “capital loss carryover”) mean, which you obviously are. Good luck! [Previous page](https://boards.straightdope.com/t/capital-loss-carryover/655638.md?page=1)