You need to report the loss in the year that it happened. Your loss will offset any gains that you have this year, and then an additional $3,000 ($1,500 if married filing separately) will be used to reduce your other income.
The remaining balance will be carried into the next year where it will be used to first reduce any capital gains and then, again, any remaining amount up to $3,000 will reduce your taxable income.
Note that the $3,000 will be removed from your carryover amounts even if it does not yield any benefit to you.
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