Large capital gains against large past losses

[50racer]

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.

[Anonymous_]

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.

[Opus 17]

" 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.

[50racer]

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).   

[50racer]

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.

[Anonymous_]

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@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).   

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

[50racer]

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