Q. Short and Long Term Capital Losses from previous years; how much can offset gains from this year?
A. Simple answer: all of it. That is, all of it that carried forward from the previous years (because it did not get used in the previous years).
Q. I can use all of those prior years 50K losses to zero out this 25K gain from this year for capital gains tax elimination purposes, correct?
A. Correct. With a $50K carry over applied to $25K gains, you'll most likely have a $22K carry over to 2024. $25K of the $50K will be used against the $25K 2023 gains and $3K (the maximum allowed) will be used against your other 2023 income. If you did not have enough "other income" to offset, then more of the $25K excess will be carried forward.
