Short-term Crypto losses will first offset other net short-term gains.
Long-term Crypto losses will first offset other net long-term gains.
If you end up with net short-term losses and no net long-term losses, they will be applied to any remaining net long-term gains with any excess up to $3,000 used to offset other income with any excess being carried over.
if you end up with net long-term losses and no net short-term losses, they will be applied to any remaining net short-term gains with any excess up to $3,000 used to offset other income with any excess being carried over.
if you end up with both short and long-term capital losses, short-term is used first for the $3000 deduction
