Just making an example: if I have 43k short term capital loss in 2020 and I can only claim 3k loss for 2020 tax return. Now the question is: If I make 50k short term capital gain in 2021, can the carryover loss 40k be offset from 50k? So that I will be taxed on only 10k short term capital gain for 2021 tax return?
The reason I am asking that: I heard (someone on forum) that only 3k carryover loss can be claimed from short term capital gain each year, the person specifically mentions "short term capital gain". I doubt its accuracy, so I am asking here and hope to be familiar with the tax information.
Thanks.
