Capital Loss Carryover Calculator

Under IRC §1211(b), you can deduct up to $3,000 of net capital losses against ordinary income per year ($1,500 if married filing separately). Any loss beyond that limit carries forward to future tax years — there's no expiration date under IRC §1212(b), and it carries forward indefinitely until fully used or until you die (unused carryovers do not transfer to your estate or heirs).

The IRS Schedule D Capital Loss Carryover Worksheet nets short-term gains/losses and long-term gains/losses separately first. If the combined result is a net loss, the deduction against ordinary income draws from the net short-term loss FIRST, and only dips into the net long-term loss once the short-term loss is exhausted. This matters for character: short-term losses would otherwise offset ordinary-rate short-term gains, while long-term losses are more "valuable" against 0%/15%/20% long-term gains — so using short-term first preserves your long-term losses for future high-value offsetting.

Indefinitely, per IRC §1212(b) — there is no expiration. Each year you either have enough capital gains to absorb the carryover, or you deduct up to $3,000 ($1,500 MFS) against ordinary income and carry the remainder forward again. The carryover keeps its original short-term or long-term character every year until fully used. The only way a carryover is lost is if the taxpayer dies before using it — capital loss carryovers do NOT pass to an estate, surviving spouse (on a separate return), or heirs.

Yes. In any year you have a carryover, it's netted against that year's new capital gains and losses on the Schedule D worksheet just like current-year losses would be — same-character gains are offset first (ST carryover vs ST gains, LT carryover vs LT gains), with any leftover applied cross-character. Only after full netting does the $3,000 ($1,500 MFS) ordinary-income deduction apply to what's left.

Yes — IRC §1211(b)(2) sets the MFS annual deduction limit at $1,500, exactly half of the $3,000 limit for single, married filing jointly, head of household, and qualifying surviving spouse filers. This mirrors the general MFS pattern of halving joint-filer thresholds and is one of several reasons MFS is usually the more expensive filing choice for couples with investment losses.