The loss is carried over until it can be used. The limitation of claiming $3000 of the loss per year only applies if there is not a gain being reported that can be reduced by the losses that are carried into the current tax year.
In your case, you said your gains were in the mid-$50,000 range and your carryover loss was less than that amount. That means that all of your carryover loss was applied to your gains for 2023 which resulted in you only being taxed on a gain of $5922 instead of a gain over $50,000.
@mars-man
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