<topic sku="dlxbiz" tNum="289593" author="erinpa" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about capital loss carryovers</title><category fLocale="cdn">investing</category><klink type="cncpt">Tell me about capital loss carryovers</klink></index>
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<p>The IRS limits the amount of capital loss that you can deduct from ordinary income, such as wages and salaries. If you have a short-term or long-term capital loss from the sale of an asset, you first deduct the loss from any capital gains you have in the same year. Then, you can deduct up to a certain amount in capital losses from your other taxable income per year. The deductible amount can vary by year, and is lower if you use the Married Filing Separately filing status.</p>
<p>Although the amount of capital loss that you can deduct each year from your ordinary income is limited, you can <glossary>carry forward</glossary> any amount of short-term losses and long-term losses and apply them to subsequent years until they are used up. </p>
<p>You can enter any capital loss carryovers from prior years in the Capital Gains Estimator and see how they may affect your estimated capital gains tax this year. <alink type="prcdr" href="entercapitallosscarryoversinthecapitalgainsestimator.xml"/></p>
<p variant="note">GainsKeeper offers powerful capital gains tools that can help you track your capital gains and losses. GainsKeeper makes it simple for you to use your Money file to complete your IRS Schedule D, and offers precise capital gains calculations that automatically adjust for wash sales, stock splits, and mergers and spin-offs. Plus, you'll have access to tools and suggestions that could help save money on your taxes. All Microsoft Money users receive a free 30-day trial for GainsKeeper and discounts on an annual subscription. Money Premium and Money Small Business users get a whole year free!</p>
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<tease>Learn more about GainsKeeper</tease>
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<li>On the <emph>Investing</emph> menu, click <emph>Portfolio</emph>.</li>
<li>In the left pane on the <emph>Other Tasks</emph> list, click <emph>Capital gains tracking for Schedule D</emph>.</li>
