I have a tax loss carrover from 2022 of $25,000.In 2023 I have a long term gain of $15,000 and a short term gain of $8000.What is the offset for 2023?

[NCperson]

• It will all be offset, leaving $2000 for csrryforward to 2024 

[AmyCPA]

Thanks for reaching out. 

How that loss carryover applies depends on the type of loss carryover.  If this is a loss from a business, then those losses will not offset any of your capital gains directly but will help reduce your overall taxes in 2024. 

Assuming the 25,000 is a capital loss carryover, it will also be subdivided into short-term capital losses and long-term capital losses.  Those losses will then apply to the respective capital gains (short-term to short-term and long-term to long-term).  That loss will offset those gains fully (23K) leaving 2K to offset the other non-capital gain income on your return.

If you're not sure what characterization of that 25,000 is, you may download a copy of your 2022 return (including worksheets).  The Turbo Tax worksheet aptly named "Carryover Worksheet" will detail the characterization of the loss carryover.

Thanks for asking.  If you need more information please feel free to reply to this thread.

[dmertz]

Do a simulated tax return to find out.  Assuming that the $25,000 loss carried over from 2022 is some combination of short- and long-term capital losses, I think you'll find that all $23,000 of the 2023 capital gains will be offset, the remaining $2,000 of carryover will appear on Form 1040 line 7 (negative 2,000)  to offset $2,000 of ordinary income and, assuming that you have at least $2,000 of ordinary income to offset, nothing carrying forward to 2024.