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Amended Return for Capital Loss Carryforward?

Patrick Michael

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New client found  a 1099B with a $8,000 LT Capital Loss for 2021.  He already has a ~900K  capital loss carryforward (unsuccessful day trader) so the loss will not effect his tax liability.  He also wants to add an additional expense to his 2021 Home Office Deduction carryforward , again no effect on 2021 tax liability .  Is it necessary to file an amended return to add these amounts or can I can just add these amounts to his 2022 carryforwards?  Does the IRS track the carryforward numbers from year to year?

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Read the Ringers "Splitting Nails" thread stared March 1st. You will see differing opinions of whether to amend or not.

Personally I lean toward just adjusting the carryforward numbers.

However if it was much bigger adjustment I would lean toward amending.

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I'd adjust the carryforwards too.  Or not even bother is there is no chance the client will use up those losses in his lifetime.  Speaking of losses, that $3k loss allowed to offset ordinary income has been the same since the beginning of time.  No inflation adjustment ever.  Perhaps congress doesn't like losers.

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