Capital Loss Carryover

Description and Definition of Capital Loss Carryover

The amount of capital loss not allowed as a deduction in the current year and carried over to the next year. A capital loss that is not deductible because it exceeds the annual $3,000 capital loss ceiling. A carryover loss may be deducted from capital gains of later years plus up to $3,000 of ordinary income.

Resources

See Also

Further Reading

• Capital Loss Carryover in the West's Tax Law Dictionary
• Capital Loss Carryover in “A Dictionary of Taxation”