If my only taxable income is short-term gains with stocks, how much of a $26,000 loss in 2016 (no taxable income) can be carried over to offset $35,000 in gains in 2017?

[sws-ctn]

I have had no taxable income since 2010. During that time, my total short-term stock losses amount to $90,000 - never a gain in any year. Can losses in years prior to 2016 also be carried over when I file in 2018 (if I prove to be a smarter trader this year than in years past!)?

[RichardK · Accepted solution]

You are allowed to carry forward unused capital losses from one year to the next, the capital losses are offset against capital gain, then you use $3,000 of the capital loss to offset ordinary income, any unused capital loss is carried to the next year, click here for more information.