The tax brackets for long-term capital gain income are determined after all other income. The tax laws require your capital loss c/o to be used to offset current year capital gain income
for example: current year LT capital gains $56K
current year non-passive loss $-2K
AGI = $54K
CLCO from 2023 $72K
tentative usage $59K making line 7 on 1040 -$3K and AGI -$5K. Since the $3K capital loss does not provide a benenfit it is not used and your CLCO to 2025 would be $16K
the remaining $2K of negative AGI becomes a Net operating loss c/o to 2025 (not calculated by Turbotax)
