PattiF
Expert Alumni

Investors & landlords

No, the loss must be applied to the Long Term Capital gain first.

 

From the TaxBook: "When a taxpayer carries over a loss, the loss remains long term or short term. A long-term loss carried over to the next tax year will reduce that year's long-term capital gains before it reduces that year's short-term capital gains."

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"