Capital Loss Carryover Tracker Calculator 2026 β $3,000 Annual Limit
Track your capital loss carryover. Annual $3,000 ordinary income offset ($1,500 MFS). Short-term and long-term character preserved. Multi-year projection with 5-year carryover ledger.
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Short-term loss from prior year Schedule D $
Long-term loss from prior year Schedule D $
Use negative for current-year ST losses $
Use negative for current-year LT losses $0
Ordinary Income Offset
$0
Net Short-Term
$0
Net Long-Term
$0
Remaining Carryover
Capital Loss Carryover Calculation
How to Track Capital Loss Carryovers
Capital loss carryovers accumulate when you have more losses than gains in a tax year, after the $3,000 ordinary income offset. Each year, you first net your short-term gains/losses together, then your long-term gains/losses. The characters then interact: excess ST losses can offset LT gains, and vice versa.
The Calculation Process
Step 1: Add carryover losses to current-year losses (by character)
Step 2: Net ST totals β net LT totals
Step 3: If both net to losses, combine for ordinary income offset
Step 4: Ordinary income offset = MIN($3,000, total net loss)
Step 5: Remaining net loss β carryover to next year (preserve ST/LT)
Step 2: Net ST totals β net LT totals
Step 3: If both net to losses, combine for ordinary income offset
Step 4: Ordinary income offset = MIN($3,000, total net loss)
Step 5: Remaining net loss β carryover to next year (preserve ST/LT)
Example
$8K ST carryover + $12K LT carryover, $2K ST gain + $5K LT gain this year:
Net ST: ($8,000 carryover) + $2,000 gain = ($6,000) net ST loss
Net LT: ($12,000 carryover) + $5,000 gain = ($7,000) net LT loss
Net combined loss: $13,000
Ordinary income offset: $3,000 (limit)
Remaining carryover: $10,000 (maintain ST/LT character per IRS rules)
Net ST: ($8,000 carryover) + $2,000 gain = ($6,000) net ST loss
Net LT: ($12,000 carryover) + $5,000 gain = ($7,000) net LT loss
Net combined loss: $13,000
Ordinary income offset: $3,000 (limit)
Remaining carryover: $10,000 (maintain ST/LT character per IRS rules)
Extended
5-Year Carryover Projection
Project your capital loss carryover over 5 years with hypothetical gains, losses, and income. Track when the carryover is fully used.
Project your capital loss carryover over 5 years using hypothetical annual gains and losses. See when the carryover is fully exhausted.
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5-Year Carryover Ledger
| Year | ST Gains | LT Gains | Ord. Offset | ST Carryover | LT Carryover | Total Carryover |
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Frequently Asked Questions
What is a capital loss carryover?
A capital loss carryover occurs when your capital losses exceed your capital gains in a tax year. The IRS allows you to deduct up to $3,000 of net capital losses against ordinary income per year ($1,500 if married filing separately). Any losses beyond that limit carry forward indefinitely to future tax years. There is no time limit on capital loss carryovers β they can be used in any future year until fully exhausted.
How is short-term vs long-term character preserved in a carryover?
The IRS requires you to maintain separate tracking of short-term and long-term capital loss carryovers. Short-term losses first offset short-term gains (taxed as ordinary income). Long-term losses first offset long-term gains (taxed at 0%/15%/20%). If you have net losses after netting within each category, the losses cross over to offset gains in the other category. The character (ST or LT) of the remaining loss is preserved in the carryover.
What happens to capital loss carryovers at death?
Capital loss carryovers do not transfer to heirs β they are permanently lost at death. The unused carryover cannot be passed to a spouse or children. This is an important estate planning consideration. If you have a large capital loss carryover late in life, it may be worth harvesting gains during your lifetime to use up the losses, rather than letting them expire at death.
How does the $3,000 ordinary income offset work?
After netting all capital gains and losses, if you have a net capital loss, you can deduct up to $3,000 against ordinary income (wages, interest, business income, etc.) in that tax year. For married filing separately, the limit is $1,500. This $3,000 offset reduces your adjusted gross income and is reported on Schedule D, Line 21 of Form 1040. The remaining net loss above $3,000 carries forward.
Can tax-loss harvesting help use my capital loss carryover?
Yes, but in reverse β if you have a large existing carryover, you don't need to harvest additional losses (you already have excess losses). Instead, you might intentionally harvest gains to use up your carryover without paying tax. For example, if you have $50,000 of long-term carryover loss and $50,000 of unrealized long-term gains, you can sell those gains with zero tax impact β the carryover offsets them completely. This "gain harvesting" resets your cost basis higher.