$3000. You are limited to $3000 per year. Any additional can be carried
forward to next year and future years until used up at the rate of $3000 per
year. Each year capital losses are first used to reduce capital gains before
being deducted against ordinary income. Example: you lost $20,000 on stocks in
2017. You may deduct $3000 for 2017 and carry a $17,000 loss forward to 2018.
In 2018, you make $5000 in the stock market; 17,000-5000= $12,000 net loss for
2018, you may deduct $3000 for 2018 and carry $9000 forward to 2019.
