I have looked for a specific resource that states that carryover losses must be used if there is enough capital gains reported on the return. I did not find an IRS instruction that uses that type of wording. Instead, you have to consider the tax forms themselves and how future carryover losses are calculated.
There is no provision in the tax forms or their instructions that would allow you to not apply the carryover loss to any capital gain being reported for the current year. If skipping the carryover loss was allowed, the tax form (Schedule D) would have that provision. Instead, the carryover loss is reported on Schedule D and combined with current year gains. Any remaining loss is carried forward to future years.
@Marti-R
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