CROCKD wrote:As this is the season of tax loss selling, my question pertains to capital losses carried forward. So far I have only carried back losses.
To date I have not claimed Carried Forward Capital Losses (Net capital losses of other years) Line253 on the tax form.
Playing around with tax software it seems to me that the total carried forward amount is deducted from Net Income to calculate Taxable Income even if the carried forward amount is more than the taxable capital gain for the year under consideration.
For example Taxable Capital Gain of $205 reported on Line 127
Net capital losses from other years reported on Line 253 of $350
Anyone care to comment?
Turbo Tax (Quick Tax) has always had that bug in my opinion.
I always have a back store of Net Capital Losses from previous years that I take advantage of on the Loss Worksheet every year (that gets transferred to line 253.
I must be sure to only enter an amount equal to line 127 or it will quite happily deduct more than is on line 127, further reducing the taxable income.
This has always left me scratching my head.