Suppose I have $10K of long term capital losses in FY2018. I'm married filing jointly, so the max I can deduct is $3K, and carry over $7K to the next year.

Question: do I then have to deduct $3K against capital gains (long-term only? can I use short-term too?), or can I somehow deduct all $7K against income and/or gains.

I want to avoid the hassle of book-keeping and tracking losses for two-to-three years if possible.


The $7k can offset gains next year, long term or short, and up to $3K of ordinary income.

I assume you do your taxes by hand? Else tax software makes the carry-forward pretty simple.

  • Perfect -- appreciate it. That's how I read the tax code as well, but wanted to confirm. Thanks so much!
    – David
    Nov 7 '18 at 3:15

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