WRONG!. short-term gains and losses are netted as are long-term gains and losses. then if one type has losses while the other type has gans they are netted. if the net is a loss then up $3,000 (MFS $1,500) can be deducted against other income if the loss exceeds $3,000 (or the MFS limit) the exc4ess is a carryover of the same type as that which created the excess losses. ex $12,000 net LTCL, $4,000 net STCG, $3,000 is deductible and there is a $5,000 LTCL carryover. reverse the numbers and there is a $5,000 STCL carryover
