I understand short term losses offset with short term gains. Long term losses offset long term gains. I also understand you may carryover a capital loss multiple years, $3000 per year.
However, what would happen if there is only a short term loss, and a long term gain?
For example, let's assume I have short term capital loss of $30,000 in the year 2020. Assuming I have no other gains or losses, I can deduct $3000 carryover per year for the next 10 years. However, what would happen if I have a long term capital gain of $10,000 the following year (2021)? If I didn't have any short term gains, how do short term losses offset long term gains in taxes with they carryover rule, given they are usually taxed at different rates? Most, importantly, does TurboTax take all this information into account?
