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New Member
posted Dec 30, 2024 8:24:17 AM

I keep seeing the 3k limit on capital gains but what if you have a much larger loss against a large gain?

Say I have a total capital gain on sale of stock of $50k, but I have a loss of another stock of $10k (assume all long term).  Is the $10k completely offsetting the gain for a total of $40k total taxable gain (50 minus 10) the same year or will I still hit the $3k limit and trigger the need for a carry-over?

 

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2 Best answers
Level 12
Dec 30, 2024 8:42:22 AM

$40K would be your net capital loss. However, only $3,000 may be used to offset other income in any year.

 

@JaimeCLT has a capital gain of $50k and a capital loss of $10k, @Mike9241 

 

The capital loss offsets $10k of the cap gain so the net capital gain is $40k. The $3k limit against all other income doesn't come into play.

Level 15
Dec 30, 2024 9:14:23 AM

If you have investment sale losses, after you subtract the losses from your gains then if you have a net loss, you can only deduct up to 3,000 per year.  The rest you have to carryover.  And you can’t skip a year.

 

 

3 Replies
Level 15
Dec 30, 2024 8:39:29 AM

 

 

 

misread your thread. @M-MTax is correct. net $40 capital gain 

Level 12
Dec 30, 2024 8:42:22 AM

$40K would be your net capital loss. However, only $3,000 may be used to offset other income in any year.

 

@JaimeCLT has a capital gain of $50k and a capital loss of $10k, @Mike9241 

 

The capital loss offsets $10k of the cap gain so the net capital gain is $40k. The $3k limit against all other income doesn't come into play.

Level 15
Dec 30, 2024 9:14:23 AM

If you have investment sale losses, after you subtract the losses from your gains then if you have a net loss, you can only deduct up to 3,000 per year.  The rest you have to carryover.  And you can’t skip a year.