If my only taxable income is short-term gains with stocks, how much of a $26,000 loss in 2016 (no taxable income) can be carried over to offset $35,000 in gains in 2017?

sws-ctn · ‎June 4, 2019

I have had no taxable income since 2010. During that time, my total short-term stock losses amount to $90,000 - never a gain in any year. Can losses in years prior to 2016 also be carried over when I file in 2018 (if I prove to be a smarter trader this year than in years past!)?

RichardK · ‎June 4, 2019

You are allowed to carry forward unused capital losses from one year to the next, the capital losses are offset against capital gain, then you use $3,000 of the capital loss to offset ordinary income, any unused capital loss is carried to the next year, click here for more information.

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If my only taxable income is short-term gains with stocks, how much of a $26,000 loss in 2016 (no taxable income) can be carried over to offset $35,000 in gains in 2017?

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