Yes, that is correct. If even after accounting for wash sales, you have a capital loss of $10,000 for 2021, you would be able to deduct $3,000 from your other income this year.
The remaining $7,000 loss gets carried forward to next year to offset any capital gains in 2022. If you do not have capital gains in 2022, you will be able to deduct another $3,000 of your ordinary income. As the law currently stands, you can carry capital losses forward until they are entirely used up.
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