Your response is confusing. My question is how much of my carryover capital losses can be used to offset gains in the current year?
Your response was "all of it" but then you go on to indicate ONLY $3,000 of prior year losses can be applied against current year capital gains.
Which is it?
If it is the former (all of it) the following applies:
if I had carry over capital losses of $200,000 from prior year(s), I could use all $200,000 to offset that amount of capital gains in the current tax year. If my gains in the current year were only $50,000, I could offset the entire $50,000 with carry over losses and carry the remaining $150,000 of my $200,000 prior year carry over losses to next year.
If it is the later ($3,000) the following applies:
if I had carry over capital losses of $200,000 from prior year(s), I could ONLY use $3,000 of the $200,000 to offset my capital gains in the current tax year. The remaining $197,000 of carry over capital losses would be carried over again. By this formula, it would take over 65 tax years for me to use all my carry over capital losses to offset capital gains income.
You also appear to say something to the effect that I can use carry over capital losses to offset ordinary income.
Please clarify:
(1) how much of my capital loss carry over from prior year(s) can be used to offset current year capital gains - 100% or $3,000?
(2) whether, under what circumstances, and what $ amount of, capital loss carry over from prior year(s) can be used to offset ordinary income in the current year?
