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Returning Member
posted Feb 23, 2024 12:18:51 PM

Max 3k capital gains loss when having large gains later

If you have a year with say -30,000 in capital gains loss one year. How does the max $3,000 capital gain loss carry-over work if your future years are positive? For example, if you lost 30,000 but then made 30,000 the next year, would you only be able to count 3,000 of that towards your gains this year? Therefore taking at least 10 years to fully use the capital gains loss carry-over? 

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1 Replies
Level 15
Feb 23, 2024 4:32:56 PM

Any capital loss carryover is first used against any current year capital gains.  If there is still any leftover carryover losses, that is limited to $3000 per year.