Hello! TurboTax seems to be deducting my TOTAL capital losses from my federal tax dues. I thought this loss was capped at -$3000? Why does it keep deducting?

[Texas Roger · Accepted solution]

There is no limit on the amount of capital losses that can be used to offset capital gains in the same tax year. Once the capital gains are totally offset, only an additional $3000 of can be claimed as a loss and the balance is carried forward to the next tax year. Does this explain why more capital losses are being deducted than you expected?

[looroo]

Hey mate! Thank you for the reply! 

So for a tax year (in this case, 2019) the total realized capital losses can be deducted from the total capital gain?

if someone has $10,000 in realized gains, but $9,000 in realized losses ... the total gain is just $1,000?

[Texas Roger]

Yes the taxable gain is only $1000 in that example.