equity capital loss

[manishrecw]

i have incurred a equity capital loss of 22k in 2023 . Now in 2024 I have 15k profit. can i cover whole profit of 15 k with last year loss and not required to pay any additional capital gain tax in 2024 . for US tax return?

[DaveF1006]

Yes, you can use your capital loss from 2023 to offset the capital gains from 2024 when filing your U.S. tax return. Here's how it works:

1. Capital Loss Carryover: Since your capital loss in 2023 was $22,000, and you didn't have gains to offset that entire amount in 2023, you can carry forward the unused portion to future years.
2. Offsetting Gains: In 2024, your $15,000 capital gain can be fully offset by the 2023 loss carryover. This would effectively reduce your taxable capital gain for 2024 to $0.
3. Remaining Loss: After offsetting the $15,000 gain in 2024, you would still have $7,000 ($22,000 - $15,000) of capital loss to carry forward into 2025 and beyond, which can be used to offset future gains or up to $3,000 of ordinary income per year.