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11406: Schedule D - Capital Loss Carryover


1040 Individual Data Entry

Where do I enter capital loss carryover from a prior year in a 1040 return?

Capital loss carryovers from a prior year may be entered on the D2 screen (on the Income tab). The short term capital loss carryover will be entered on line 6, while the long term will be entered on line 14.

 

Line 21 of Schedule D requires that up to $3000 ($1500 for married filing separate) of a taxpayer's combined net short-term and long-term capital loss be reported on Form 1040, line 6 (Schedule 1, line 13 in Drake18 or line 13 of the 1040 in Drake17 and prior), without regard to whether it is used in its entirety in the current year.

The loss on line 6 becomes part of the adjusted gross income on the 1040 -- if the adjusted gross income on the return reduces line 11b (line 10 in Drake18 or line 41 in Drake17 and prior) of the 1040 to a negative amount, part or all of the line 6 loss is carried forward. In View mode, the page labeled Wks Loss (Capital Loss Carryover Worksheet) shows the calculation for what portion of the loss is available to be carried forward. In 2015 and prior, this calculation appears on the page in View labeled WK_D_CG_.


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