equity capital loss

Forum|Forum|1 year ago
March 19, 2025
1 reply
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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?

Ask the Experts - Changes II - Mar 2025

DaveF1006

Level 15

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:

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.
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.
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.

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