Section 1256 loss carryover

[Boydac]

If I had $7k in losses and used the $3k last year, do I need to trade this year in order to carryover another $3k or can the remaining carryover from last year's losses just be applied towards my W2 income if I didn't make any options trades this year in my taxable account?

Trying not to miss the remaining SPX options loss carryover.

[Mike9241 · Accepted solution]

no need to do any RFC (1256) or other trades of capital assets. Of the $4K in losses up to $3K can be used to offset other income this year and the remaining $1K carries over to 2024

[Boydac]

Ok, thank you.