How much prior year capital losses can offset future gains with?

[VolvoGirl]

The 3,000 you can use on your tax return is AFTER you offset all the current year gains.

You get to first offset the loss against any gains you have each year so that can use more of it up.  Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year.  Turbo Tax does all the calculations for you.  Just enter the prior year carryover amount.

So in your example you get to first offset the 50,000 in gains.  Then get to take another 3,000 loss off your tax return.  So you only have $147,000 remaining loss to carryover to next year instead of 150,000.