You are misunderstanding how things work. The carryover losses are used to determine if you have a NET gain or loss this year. Look at Schedule D, how Lines 6 and 14 are used in the calculation to determine the current year gain or loss. As I said before, the losses are NOT limited to $3000 per year. The losses offset ALL of the gains, PLUS you can use an 'extra' $3000.
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/f1040sd.pdf">https://www.irs.gov/pub/irs-pdf/f1040sd.pdf</a>
This quote from Fidelity puts it clearly: "In the following year, the loss carried forward would first be used to offset potential capital gains. If capital losses still exceed capital gains, the filer can claim up to $3,000 as a loss".
<a rel="nofollow" target="_blank" href="
https://www.fidelity.com/mymoney/how-do-capital-gains-and-losses-carry-over">https://www.fidelity.co...>
If you have been overriding this type of thing in previous years, your prior tax returns are probably wrong, and you need to get them corrected. If that is the case, it is possible that your carryover losses should have already been used up in prior years and you would not have any carryovers to this year. You may want to seek the help of a tax professional to get things straightened out.
