@zenmster - let me try and make everyone's responses easier:
1) with respect to capital gains and losses, you can net them against each other. However,
a) long term capital losses must be netted against long term capital gains
b) short term capital losses must be netted against long term capital gains
c) if the result of b) is a loss, those losses can be netted against any remaining net capital gains from a)
d) if the result of a) is a loss, then CAN NOT be netted against any remaining net capital gains from b)
2) if there is a net capital loss after working through 1), then up to $3000 of these losses can be used to reduce ORDINARY income in the current year. Any thing above $3000 of these losses can be used to offset any CAPITAL gains next year (per for rules in #1) or again to reduce ORDINARY income by up to $3,000 next year.... and repeat the cycle until all the losses are consumed.
Just use TT and follow the rules to input your trades; TT will figure all this out for you.
