topic Large capital gains against large past losses in Deductions & credits

Large capital gains against large past losses

50racer — Tue, 24 Feb 2026 08:19:02 GMT

Is there a time limit to when a large capital gain can be offset by a large capital loss? More specifically as it applies to my current situation. Last year i had a carryover of a loss of 12K from stocks. This year due to stupidity on my part i will have a 120K loss from stocks sold earlier in the year. Now it is coming up to the end of the year and i do have a couple of stocks that i could sell and offset that 120K by 90K leaving me with a 30K loss for the year. I am confident that 90K good position will go up next year. If i do not sell that good position and have a carry over next year of 132K and sold the good one next year would it offset that 132K. I basically want to know if that large loss could offset a large gain in future years or will it just keep coming off 3K at a time. If i decided not to sell good position for 2 more years would it still be offset by the carryfoward loss in whatever year it was sold. Thank you.

Re: Large capital gains against large past losses

Anonymous_ — Thu, 21 Dec 2023 16:48:42 GMT

Net capital loss carryovers never expire (until you die).

Your net capital loss carryovers are first used to offset capital gains and then up to $3,000 ($1,500 if married filing separately) of net losses (per tax year) can be used to offset all other types of income.

Re: Large capital gains against large past losses

Opus 17 — Thu, 21 Dec 2023 16:54:43 GMT

" I basically want to know if that large loss could offset a large gain in future years or will it just keep coming off 3K at a time."

Both. You can deduct $3000 per year if you have no offsetting gains, and you can apply to loss to a large gain at any time in the future. Just be sure to keep filing schedule D, so the loss carry forward is documented.

Re: Large capital gains against large past losses

50racer — Thu, 21 Dec 2023 16:54:48 GMT

Thank you for your reply @Anonymous_ So if I decide to keep my good positions until 2025 and then sell, the gain would be offset from what will be my current 2023 carryover (minus 3k a year going forward of course).

Re: Large capital gains against large past losses

50racer — Thu, 21 Dec 2023 16:56:32 GMT

Thank you for the reply @Opus 17 . Yes I have been using Turbo Tax for years and thankfully they take care of all that heavy lifting for me.

Re: Large capital gains against large past losses

Anonymous_ — Thu, 21 Dec 2023 16:59:01 GMT

@50racer wrote:

Thank you for your reply @Anonymous_ So if I decide to keep my good positions until 2025 and then sell, the gain would be offset from what will be my current 2023 carryover (minus 3k a year going forward of course).

Yes, correct (provided, of course, that you have no capital gains in the 2024 tax year).

Re: Large capital gains against large past losses

50racer — Thu, 21 Dec 2023 17:04:04 GMT

Of course if no gains sold in 2024. I appreciate the quick responses from you and @Opus 17