Can I deduct "leftover" investment losses from 2014 & 2016 (adding combined balance) on my 2017 return?

[inlib2003]

I had a massive ($7500) investment loss in 2014, and took the maximum deductions for my 2014 & 2015 returns ($3K each year), leaving a balance of $1500 unused... Then I had to sell investments in 2016 at a loss to the tune of about $4,600, and again wrote off $3K in my 2016 return.

So once again I have $3K in losses if the leftovers are now combined, to write off in 2017, by my logic.

Is there a prohibition (or a "red flag" that will result) to combining "leftover" losses from non-consecutive years?

Thanks much for any pointers!

[juliob · Accepted solution]

Having capital losses from different years, whether consecutive or not, does not trigger any "red flags" with the IRS or State tax agencies. 

The following example below came from a TurboTax Article that offers a basic understanding of Capital Gains and Losses and how each loss is used against Capital gains:

"Losses on your investments are first used to offset capital gains of the same type. So short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain. So, for example, if you have $2,000 of short-term loss and only $1,000 of short-term gain, the net $1,000 short-term loss can be deducted against your net long-term gain (assuming you have one). If you have an overall net capital loss for the year, you can deduct up to $3,000 of that loss against other kinds of income, including your salary and interest income, for example. Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income. If you use married filing separate filing status, however, the annual net capital loss deduction limit is only $1,500." - 

https://turbotax.intuit.com/tax-tips/investments-and-taxes/capital-gains-and-losses/L7GF1ouP8

Here are some more articles regarding investment income:

• https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-...
• https://turbotax.intuit.com/tax-tips/investments-and-taxes/tax-tips-for-investors/L5woKP9wl
  

Hope this information is helpful.