Capital Loss carryover + Wash Sale
For 2023 tax return, I have $2K short term loss and $4K long term loss. I was able to deduct $3K loss for 2023, I have $3K loss carryover for 2024 tax return. Do I treat it as all short term loss carryover, all long term loss carryover or $1K short term and $2K long term carryovers? I hope IRS allow me to choose for sake of simpler math and record keeping; otherwise, it could be quite messy when similar happen multiple years in a row.
As long as I sell same stock with zero loss or with a slight gain, I have no trouble with the wash sale rule? Still no problem when I do it multiple times in a year by specific lot sale to archive zero loss or with a slight gain?
Permalink Submitted by Alan - IRA critic on Tue, 2024-05-28 15:00
Off topic for this forum, but you are required to apply the short term losses first to the 3,000 carryover. Therefore, all of your 3k carryover is LT.
Wash sale rules do not affect security sales where you are not reporting a loss.