How does Capital Loss Carryover is calculated

[prettyspring]

When I filed taxes in 2023, I had Capital Loss Carryover of $19K ($6K for Short-Term and $16K for Long-Term)

For Tax Year 2024, I have a Long-Term Capital Gain of $15K and Short-Term Capital Gain of $10, how much can I claim?  

1. Does Turbo Tax subtract $15,010 from the $19K and my new Capital Loss Carryover would be $3,990?   (19,000 – 15,010 = $3,990)
2. If #1 is correct, can I still claim $3K Capital Loss?  $3,990 - $3,000 = $990 of Capital Loss Carryover. 

[VolvoGirl]

The whole 19,000 carryover will be used against your total gain of 25,000 (15+10) leaving you with a gain of 6,000 for 2024.    Although your figures might not be right ..... $19K ($6K for Short-Term and $16K for Long-Term)  6+16=22 not 19.  

[tagteam]

Looks like a $6,990 net loss using $3,000 in 2023 with a $3,990 loss carryover to 2024.

[Mike9241]

that's correct as long as adjusted gross income is not negative. 

[prettyspring]

Let me rephrase my questions:  

When I filed taxes in 2023, my Capital Gain was $22K ($6K for short term and $16K for long term). Since I could only claim $3K Capital Loss Limit per year, my Capital Gain Carryover to 2024 was $19K ($22K - $3K = $19K).   

For Tax Year 2024, my Adjusted Gross Income is not negative.  I have a long term capital gain of $15K and short term capital gain of $10, total is $15,010

1) Can I deduct the whole amount of capital gain $15,010?  ($19,000 - $15,010 = $3,990) AND THEN ANOTHER $3K of the Capital Loss Limit per year?   $3,990 - $3,000 = $990.  $990 will be the Capital Loss Carryover to 2025?

OR

2)  Since the Capital Loss Limit per year is $3K, I can only deduct $3K from  $15,010 capital gain (tax year 2024)?  ($15,010 - $3,000 = $12,010) and I have to report $12,010 Capital Gain? And my Capital Gain Carryover to 2025 is $16K   ($19K - $3K = $16K)  

Thank you so much!   

[VolvoGirl · Accepted solution]

First of all in the first sentence for 2023 I think you meant your Capital LOSS was $22K not a Capital Gain.  Right?  It's a Capital Loss Carryover.  

It's  #1.  You can deduct the whole carryover amount against all your gains each  year.  So you can use  up more of it.   And then if you still have a net loss you can deduct another 3,000.    Then carryover $990 to 2025.  

[prettyspring]

Hi VolvoGirl, 

In the first sentence: Yes, it's the Capital LOSS of $22K and Capital Loss Carryover 

Thank you so much!