So do I file forms 8949 and Sched D,

Yes.

but enter "0" on Sched D line 21 and 1040 line 13?

Nope. Just follow the normal instructions for these lines.

NEXT year, when you start preparing his return for 2012, get the instructions for Schedule D and look for the capital loss carryover worksheet. The version for carrying over losses from 2010 to 2011 is in the 2011 instructions, on page 11. http://www.irs.gov/pub/irs-pdf/i1040sd.pdf . That worksheet will tell you how much of the loss from 2011 you can carry over into 2012. As Phil said, the answer in the back of the book is "all of it", but the worksheet should confirm this. And it's much more official than Phil's word. Or mine. ;-)

If you want to play with it, you can use the worksheet in this year's instructions. Just be aware that the line references are probably wrong, as schedule D had a major redesign for 2011. You'll have to look at the 2010 forms and find the equivalent information on the 2011 forms.

How long can capital losses be carried forward?

Capital loss carryovers are lifetime.

--Peter