I did read my own answer:) I completely understand it, but you don't so let me try it a different way. When you have gains you can use more than $3000. First, you can offset as much of the gain as needed and still use the $3000 toward ordinary up to the total amount of the loss that was carried over. I always tell my legal clients in my business tax practice that have the potential of a gain after a bad year to realize as much gain as possible to use up that loss before someone changes the law and you cannot carry it forward.
