Your allowable capital loss deduction for any tax year, figured on Form 1040, Schedule D (PDF), is limited to the lesser of:

If you have a capital loss on line 17 of Schedule D that is more than the yearly limit on capital loss deductions, you can carry over the unused part to later years until it is completely used up. Refer to Publication 17, Your Federal Income Tax, or Tax Topic 409, Capital Gains and Losses, for additional information.

References:

• Publication 17, Your Federal Income Tax
• Form 1040, Schedule D (PDF), Capital Gains and Losses
• Tax Topic 409, Capital Gains and Losses

Your allowable capital loss deduction for any tax year, figured on Form 1040, Schedule D (PDF), is limited to the lesser of:

If you have a total net loss on line 17 of Schedule D that is more than the yearly limit on capital loss deductions, you can carry over the unused part to later years until it is completely used up.

For more information about capital gains and losses, refer to Publication 544, Sales and Other Dispositions of Assets.

References:

• Publication 544, Sales and Other Dispositions of Assets
• Form 1040, Schedule D (PDF), Capital Gains and Losses

The loss on the sale of a personal residence is a nondeductible personal loss.

References:

• Publication 523, Selling Your Home
• Tax Topic 409, Capital gains and losses

The foreclosure or repossession is treated as a sale or exchange from which you, the borrower, may realize gain or loss. However, if you realize a loss on personal use property, such as your residence, the loss is not deductible. Refer to Publication 544, Sales and other Dispositions of Assets, and Publication 908 (PDF), Bankruptcy Tax Guide, for more information.

References:

• Publication 908 (PDF), Bankruptcy Tax Guide
• Publication 544, Sales and other Dispositions of Assets

If you own securities and they become totally worthless, you can take a deduction for a loss, but not for a bad debt.

The worthless securities are treated as though they were capital assets sold on the last day of the tax year if they were capital assets in your hands. Report worthless securities on line 1 or line 8 of Form 1040, Schedule D (PDF), whichever applies. In columns (c) and (d), write "Worthless." For additional information, refer to Publication 550, Investment Income and Expenses (Including Capital Gains and Losses). For more information on bad debts, refer to Tax Topic 453, Bad Debt Deduction.

References:

• Publication 550, Investment Income and Expenses (Including Capital Gains and Losses)
• Form 1040, Schedule D (PDF), Capital Gains and Losses
• Tax Topic 453, Bad Debt Deduction