<<So if I have a capital gain of $5500 but I have a cap loss carryover to use of $10,000 you are saying I can only use $3000 of the $10,000 to offset my $5500 gain so I’d still be paying taxes on $2500 even tho I have a carryover loss of $10,000?!>>
No. You can apply the carryover loss to the entire $5500 gain. But you can only use a maximum of $3000 of any remaining carryover amount to apply against other income.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
