2018 Capital Loss Calculation in error

Wayne Tylka
Wayne Tylka Member ✭✭
edited January 2019 in Investing (Windows)
QW R7.5 is calculating Capital losses in error.  It calculates the loss at the Qualified Dividend & Capital Gain rate rather than the regular tax rate.   Please note capital losses are taxed different differently than capital gains.

Also, if you have a large carry over loss entering that number in the tax program produces very funky results.  I think the program  take the is taking the first 3000 as a capital loss then takes the rest as a capital gain.

To the person who asked the question of whether the loss was short term or long term.  I have both, but please note it does not matter in the tax calculation all loss is treated the same it reduces taxable income.

Comments

  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
    edited April 2018
    Here is the link to your prior post:


    https://getsatisfaction.com/quickenco...

    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the Quicken Windows FAQ list

  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    edited January 2019
    @Wayne Tylka- You are correct that your Item 1 from the post below still persists. 

    Based on testing different QDI inputs, it looks like the QDI input value is being ignored only in the case where the Net Capital Gain shown on the Cap Gains screen is a negative value. Other testing would be welcome to confirm or refute this analysis. 

    https://getsatisfaction.com/quickencommunity/topics/2018-qualified-dividend-tax-calculation-still-in...
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    edited April 2018

    @Wayne Tylka- You are correct that your Item 1 from the post below still persists. 

    Based on testing different QDI inputs, it looks like the QDI input value is being ignored only in the case where the Net Capital Gain shown on the Cap Gains screen is a negative value. Other testing would be welcome to confirm or refute this analysis. 

    https://getsatisfaction.com/quickencommunity/topics/2018-qualified-dividend-tax-calculation-still-in...

    Adding- it is not as simple as I described. After further testing, the calculation error is not simply that QDI is being ignored. It's more complicated and would require the equation in the code to be revealed. So far, what can be said is that the error only manifests when Net Taxable Capital Gains are negative and a QDI value other than zero is input.
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    edited April 2018

    @Wayne Tylka- You are correct that your Item 1 from the post below still persists. 

    Based on testing different QDI inputs, it looks like the QDI input value is being ignored only in the case where the Net Capital Gain shown on the Cap Gains screen is a negative value. Other testing would be welcome to confirm or refute this analysis. 

    https://getsatisfaction.com/quickencommunity/topics/2018-qualified-dividend-tax-calculation-still-in...

    As it stands, the error was NOT corrected in R8. The error only manifests when Net Taxable Capital Gains are negative and a QDI value other than zero is input.

    Steps to reproduce:
    1. Enter the following values into a blank Tax Planner (34K wages, 5K Div, 5K QDI, -5K LTCG).
    2. Correct tax is $700 (5K QDI should be taxed at 0% rate) but planner shows $1,200.
    3. Vary the LTCG input value from 5K, 0, -1K, -2K, -3K, -5K.
    4. Note tax is calculated correctly for LTCG 5K and 0, but incorrectly for negative values. If no QDI is input, Tax is correctly calculated for all LTCG variations in #3.
    5. Also note that tax for -3K and -5K LTCG should not change but that it does. The -3K limit should make the result the same; All other displayed values in the planner stay the same as they should but the tax owed changes.
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    edited May 2018

    @Wayne Tylka- You are correct that your Item 1 from the post below still persists. 

    Based on testing different QDI inputs, it looks like the QDI input value is being ignored only in the case where the Net Capital Gain shown on the Cap Gains screen is a negative value. Other testing would be welcome to confirm or refute this analysis. 

    https://getsatisfaction.com/quickencommunity/topics/2018-qualified-dividend-tax-calculation-still-in...

    This error has not been fixed and remains in R9.30.
  • Wayne Tylka
    Wayne Tylka Member ✭✭
    edited January 2019
    Congrats...R17.6 corrects all Capital Loss Calcualtion error.  In fact 2019 tax Planner is spot on with tax calculation.  Very well done!
This discussion has been closed.