The rules on capital loss carryover are very simple,
If you have a capital loss carryover, it can be applied to offset current year capital gains without limit. If there is still carryover capital loss left after offsetting all current year capital gains, then up to $3,000 of the remaining carryover loss will be applied to offset ordinary income. Any remaining loss will be carried over to the next year.
There is no limit to the amount of carryover loss that can be used to offset current year capital gains. The limit is on the amount of carryover loss that can be used to offset ordinary income - that limit is $3,000 per year.
