“So my question is if the 'unused' amount of my capital loss can be carried over to the following year to offset capital gains or to be used as a tax deduction.”--->As you can see, your capital loss, $1,450, is used to offset your capital gain. As long as you have a $1,450 capital loss, and a $1,450 capital gain, they will offset each other.However, if you have a $1,450 c/o capital loss and no gains next year, you can use your $1,450( up to $3,000) of the capital loss to deduct against your ordinary income. For example, assume that your ordinary income is $40,000, because of the capital loss, you will only pay tax on $38,550 of ordinary income next year. Any capital loss that is not used in the current year can be carried over indefinitely to offset future capital gains (ordinary income up to $3,000 per year). |