bwa
Alumni
Alumni

Investors & landlords

The maximum loss that can be applied is $3,000 and the balance is carried over to future years.  However, the maximum loss is the net capital loss.  In your case, that would be $8,000 - $4,000, or a $4,000 net loss.  $3,000 would be deductible in 2016 and the balance next year.