Sorry, I still don't get it.
I understand that I have to report it but where does it say that I "must reduce it by $3000" (or must use it even if I don't have to)?
Neither publication nor the article on TT say that.
And this article here specifically clarifies that I don't have to reduce it by $3000:
https://fairmark.com/investment-taxation/capital-gain/capital-losses/capital-loss-with-little-or-no-...
Under prior law, you were required to use capital losses before personal exemptions, which in some cases could result in a capital loss being wasted. This is no longer an issue as the deduction for personal exemptions has been eliminated.
