Hi Greenery08,
If I understand your question correctly, you are asking whether capital gains generated from a RMD distribution can be used to offset other capital losses such as stock sales, etc. There is a netting process that needs to be applied in a certain order. Generally short term losses offset short term gains, and long term losses are offset against long term gains. Depending on the result:
- If you have an overall net capital loss for the year, you can deduct up to $3,000 (MFJ) of that loss against other kinds of income, including your salary and interest income.
- Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 (MFJ) of other kinds of income.
Here is a great resource to review:
https://turbotax.intuit.com/tax-tips/investments-and-taxes/capital-gains-and-losses/L7GF1ouP8
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