Question on investment loss carryover - full amount?

[MrGreenIz3]

Quick question... I have accumulated a tax loss carryover over the years of about $50K that is on my tax returns (i know, it's a lot). This year, I expect a GAIN on investment of about 50K. Does this mean the 50K i profit this year is offset by the $50K loss which essentially means no tax? Or is only 3K/year from that $50K loss applied? Thanks!

[Critter-3 · Accepted solution]

Every year the total cap losses (including the carryforward) is netted against the cap gains and if there is any losses leftover you can take up to $3000 against ordinary income and any excess loss is again carried forward like you have in the past.