Hal_Al
Level 15

Investors & landlords

No. you must use $3K of the loss each year. A carry forward does not expire (except on death). It cannot be used against a wash sale.
Example $100K carry over loss from year 1.
10K of gains in year 2, 10K off set on schedule D, 3K loss claimed on form 1040 and  87K carries to year 3
10K of gains in year 3, 10K off set on schedule D, 3K loss claimed on form 1040 and 74K carries to year 4
10K of gains in year 4, 10K off set on schedule D, 3K loss claimed on form 1040 and  61K carries to year 5
70K gains year 5, 61K offset on schedule D, 9K of capital gains reported on form 1040