Hi all I have a question about Tax-Loss Harvesting that is carried over to future years. Let's say last year I had $10k in capital losses and $0 profit. Last year I deduct $3k for tax-loss. Now I am left with $7k in tax-loss that can be carried over to future years including this one.
Now this year I make capital-profit of at least $2k. I have a tax liability of $2k for this year from my W-2. I want to use the EV tax credit of $4k this year. However, my tax loss of $7k was carried over to this year. Will my capital profit be added to my tax liability of this year, so that I would owe $4k in total tax liability? If so, could I apply only the EV tax credit for this year and skip applying $3k of my carried-over $7k of tax loss for this year and have the total $7k of tax loss be carried over to next year?
Submitted September 05, 2023 at 11:17PM by Fax215 https://ift.tt/HcdiUZy
