New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Why is my client's capital loss calculating on Form 1040, Schedule 1, line 13 and also on the Carryover Report?

Answer

Capital loss carryovers are input on Screen CO under the Carryovers folder. Amounts entered on this input screen will flow to Form 1040, Schedule 1, line 13.

Although the ($3,000) loss is calculating on Form 1040, Schedule 1, line 13, the client is receiving no taxable benefit from the loss (generally the situation when the client's AGI is negative). Therefore, the entire loss is to be carried forward to the next year. UltraTax CS will carry the ($3,000) loss to Form 1040, Schedule 1, line 13, per Form 1040 instructions. Additionally, the loss will carry to the Carryover report to be proforma'd to next year.

Related topic: Schedule D / Form 8949 - Capital Gains and Losses FAQs (1040)

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