rjs
Level 15
Level 15

Get your taxes done using TurboTax

@jj18724 

 

You misunderstood what Mike9241 said. You can use the short-term losses to offset long-term gains this year. When he said "you can only deduct $3,000 in net capital losses" he was talking about deducting capital losses against ordinary income, such as wages. And he was talking about net capital losses. That means the amount that's left after using the capital losses to offset capital gains.


For example, if you have $500,000 of capital losses (short-term or long-term), and $490,000 of long-term capital gains, then you have $10,000 net capital loss. You can use $3,000 of that $10,000 to offset other income, and the remaining $7,000 would carry over to 2023.