Capital Loss carryover... do I have to claim it?

Question

Do I have to claim my max $3000 carryover even if it has no effect on my total taxable income?

I have a large loss carryover from previous years.   My total taxable income this year will amount to zero after taking the standard deduction and exemptions.   Claiming the capital loss carryover would be a waste of the deduction, since I don't need it to reduce my income.
Do I have to claim it regardless of the circumstances?   Or can I hold it over until the following years when I might have a reduceable income?
I do have a long-term gain that will be offset on schedule D.  But if I don't take the additional allowed <$3000>  for an over-all capital loss will that be lost?

I did see this in the IRS docs ...
" When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year."
This appears to indicate that the max deduction must be taken no matter what the circumstances.
i.e.  Use it or loose it.

Is this the general rule?

kelby7670 · Accepted Answer

You are required to use your capital loss carryover each year until it has been used up.

There are several discussions on that topic

http://www.fatwallet.com/forums/finance/698298/

http://www.fatwallet.com/forums/finance/902593/

javoronkov · Answer

Capital Loss Carryover

? · Answer

Capital helpful properties are taxable, no longer deductible. i assume you're quite asking if a capital benefit may well be worn out with the aid of a carryover loss. specific you may assuming you nonetheless have a carryover loss. there is not any cap benefit carryover, that's taxed the 12 months of the ease. in case you have a internet capital loss for a given 12 months, you carry on with $3000 of it to the different income each and every 12 months, then carry the loss over to here 12 months, netting it with that later 12 months's capital helpful properties and losses, and continuing to hold over internet losses over $3000. in case you reported each and every thing precise, and had no different considerable losses meanwhile, you ought to have a number of your Delta loss left to internet with your 2011 benefit. that could desire to apply up as much as $40K of the carryover.

Anonymous · Answer

No, you cannot skip years.  If it means you don't get anything for it, tough.

You need to do the worksheet each year.  If you had $0 other income, you don't really lose it.  If you had other income you do.

tro · Answer

if your quote of the IRS instruction is valid, it would appear that you claim it no matter what its effect is on your tax return

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Capital Loss carryover... do I have to claim it?

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