Short term Capital loss carryover

[FigLeaveTree]

Hi team! 

I have $200k short term capital loss carryover in my most recent tax return.

this year I can recognize long term capital gains, same amount, $200k

I know that taxes on short term gains are lower than on the long term gains. Can I just pay taxes on my long term capital gains and save my short term capital loss carryover for later? 

thanks! 

[ColeenD3]

No.  Losses on your investments are first used to offset capital gains of the same type. So, short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain.

[FigLeaveTree]

Thanks a lot for answering! 

So in other words, it is mandatory to offset losses and gain as soon as I have such situation, correct? 

thank you 

[ColeenD3]

Yes. There is no saving them for later. Again, short-term loss is applied to short-term gains first.