A couple of years ago we had stocks with a former employer. Sold those. Two years later capital loss is still carrying over. How long does it carry over?

[octoberteddy]

Is is possible to totally drop the capital loss?

[TomYoung · Accepted solution]

A capital loss carried over from prior years is first applied to any current year capital gains. 

If there's still a capital loss after this netting then $1,500/$3,000 of the loss, (depending on your filing status), gets applied to "ordinary" income. 

If the capital loss is not all used up at this point then it's carried forward to the next year, to begin the cycle anew.

This will go on until the carried forward capital loss is driven to $0.

Tom Young

[Lilly Peck]

A capital loss carryover is the net amount of capital losses that aren't deductible for the current tax year but can be carried over into future tax years. Net capital losses (total capital losses minus total capital gains) can only be deducted up to a maximum of $3,000 in a given tax year.

There's no limit on how many years you can use capital loss carryovers.