Is there any time limit for carrying over capital losses from prior years to future gains? Hypothetical example: Can you use capital loses from year 1 against year 5 gains as long as a loses still exist after being counted against capital gains for the years inbetween 1 and 5.
Example: Lossed 100k year 1
Gained 10k year 2 carry 90k year1 to year 3 offset to 0
Gained 10k year 3 carry 80k year 1 to year 4 offset to 0
Gained 10k year 4 carry 70k year 1 to year 5 offset to 0
Gained 70k year 5 Losses from year 1 offset Gains for 0
In the example above i left the 3k income exemption off intentionally for simplicity sake.
Can you do the above, or will a loss expire? Does the same apply for Wash Sale except minus the income deduction?
