Good news! NO, there is NOT a limit on your capital loss carryforward's use.
TurboTax keeps track of the carryforward and maximizes its use! It will automatically use any loss carryforward against any gains you have (including factoring in any losses you have in the current year), then it will add on that additional $3,000 loss. Very nifty.
Here's an example how it works:
Capital loss carryforward from 2023 = ($503,000)
Capital gains in 2024 = $400,000
Capital loss carryforward used to offset cap gains in current year = ($400,000)
Maximizing capital loss (we can claim no more than $3,000 ea year) = ($3,000)
Capital loss carryforward from 2024 = ($100,000)
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