Decedent Final 1040 w/ Capital Loss

[tonia2021]

Taxpayer has 80,000 in long term capital loss. She had been deducting $3000/year. Taxpayer passed away this year. Publication 544 says capital losses cannot be carried over and are deductible only on the final return and the yearly limit still applies.

Am I reading this correctly? The taxpayer gets to deduct $3000 on her final 1040 - the rest is just wasted? It doesn't get to be taken on the final 1040 or passed thru to the estate???

Thanks

[ChEAr$]

Taxpayer has 80,000 in long term capital loss. She had been deducting $3000/year. Taxpayer passed away this year. Publication 544 says capital losses cannot be carried over and are deductible only on the final return and the yearly limit still applies.

Am I reading this correctly? The taxpayer gets to deduct $3000 on her final 1040 - the rest is just wasted? It doesn't get to be taken on the final 1040 or passed thru to the estate???

Thanks

You've got it right, tonia.

However, let's say the loss stemmed from joint ownership of common stock which went bad back then, and they have been deducting up to 3000 per year on their
joint return. Certainly wife would retain half of the unused losses I would think.
yes, I have such a case and they will never use it all up.