Offsetting Short Term and Long term gains in the same year.

[kklassy]

Can either excess short term losses and/or excess long term gains offset the other in the same tax year? (i.e if I had excess long term losses of say $50K in 2025, but short term gains of $75K, would my net be $25K?   

[JamesG1]

The term 'excess' is confusing.  I prefer the explanation in this TurboTax Help.

1. Capital losses first offset losses of the same kind, short-term against short-term or long-term against long-term.
2. Net losses of either type can then be deducted against the other kind of gain.

In this example, ST capital gains of $1,913 are reduced by LT capital loss of $8,902 resulting in a loss of $6,989

Finally, If you have an overall net capital loss for the year, you can deduct up to $3,000 of that loss against other kinds of income, including your salary and interest income.

[kklassy]

Thank you for the answer and the link.   Appreciate it