Here is my situation - I have significant capital losses this year ($21,000). I know that I can only claim $3000 of those losses on my taxes this year and the rest can be carried forward to subsequent years. Now, the subsequent years is where I have the confusion. Most of the literature and examples online talk about being able to use $3000 per year in the subsequent years. For example, in my case the literature would say I will be able to carry forward my losses up to 6 more years (21,000 - 3,000 = 18,000 and 3,000 per year would give me 6 more years). To simplify things, does the literature assume that there are no capital gains in the subsequent years? What happens if I have significant capital gains in the subsequent years? For example, next year if I have a capital gain of $50,000 - will I be able to use all of my remaining capital losses from the previous year (i.e, 18,000) and pay taxes only on $32,000 or do I have to deduct only $3000 and pay taxes on $47,000 and carry the remaining $15,000 losses to the subsequent years? Any input is highly appreciated. Thanks!
