Can I carry over short-term losses to the next year even if my long-term gains are greater than the total losses in the current tax year?

I have a net long-term gain and a net short-term loss this tax year. By default, TurboTax will offset my short-term losses with my long-term gains. However, I will have short-term gains next year. Can I carry over the net short-term losses year after year, until all short-term losses are covered by the future short-term gains and the annual 3K income cap?

480

Level 15

Mar 18, 2024 9:45:44 PM

No. The offsets will be made contemporaneously.

Level 2

Mar 19, 2024 1:28:01 AM

Is there any reference about this requirement? Short-term loss should be offset by short-term gain, and long-term loss should be offset by long-term gain. And some losses are not allowed to offset due to wash sale. The determination of wash sale can be tricky -- some brokers only report the wash sale of exactly the same security. What if one did not offset the short-term loss in the previous tax year? Does she need to revise the last year's tax document, or carry it over to the next tax year and offset with that year's short-term gain?

Why sign in to the Community?

Can I carry over short-term losses to the next year even if my long-term gains are greater than the total losses in the current tax year?