Capital Loss?

Question

If you have Capital Loss Carryover from previous year, do you have to use it this year to extent of $3k, or can you defer it to future years?

Answer 1

Even if you don't have any income this year to take it against, you'd have to subtract the $3000 from your carryover each year. It's use it or lose it. If you had a $5000 carryover from 2005, and no 2006 income, you could carry the other $2000 over to 2007.