Capital Gains Tax Confusion

chrisdenning — Tue, 29 Apr 2025 02:48:44 GMT

Hoping someone can help. I have the correct taxable capital gains under income line 12700, but the same amount is also showing up in line 25300 net capital losses from other years, under taxable income.

Further when I checked my warnings it had one for net capital loss carry forward amounts, with 2 amounts pre-populated for 2018 and 2019 under eligible taxable capital gains, but negative amounts which the program forced me to change (number must be greater than 0), so I moved them to the net capital loss box. Note: these amounts do not tie to the amount in 25300.

Re: Capital Gains Tax Confusion

syedzubi270 — Wed, 30 Apr 2025 17:26:44 GMT

The problem you're describing is that your current year capital gains (line 12700) are being completely offset by the same amount showing up as applied capital losses from other years (line 25300). This isn't necessarily an error - it might be TurboTax correctly applying your previous losses to reduce your taxable income.

Here's what's likely happening:

You have capital gains this year on line 12700
You have unused capital losses from 2018 and 2019 that TurboTax is automatically applying against your current gains on line 25300
The negative amounts you saw were likely your actual losses (which are negative by nature)

To fix this:

Go to the Capital Gains/Losses section

Check the "Capital Loss Carryover" screen

Verify the amounts from 2018 and 2019 - these should be positive numbers representing your losses

If you don't actually have these capital losses to apply, delete the amounts

If the issue persists, you might need to:

Go to the Forms view in TurboTax
Locate Schedule 3
Verify your capital gains are correctly calculated
Then check Form T1A to see how your capital losses are being applied

The system shouldn't duplicate your gains as losses unless you actually have losses to apply. If you can't resolve this, I'd recommend contacting TurboTax Support directly as they can review your specific return details.

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Capital Gains Tax Confusion

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