Why does the 2018 capital Loss show 34,734 but the carryover for 2019 show only $28,869? Does a Gain in 2019 offset the Long Term Loss in a previous year?

[JulieS · Accepted solution]

Not exactly. The 2018 loss offsets the 2019 gain. In addition you are allowed to use $3,000 ($1,500, if married filing separately) as a deductible loss each year. 

If your capital loss carryover was $34,734 from 2018, you would use $3000 in 2019 and carry forward $31,734. Since the amount you are carrying forward is only $28,869 to 2020, you must have had $2,865 in gains, or capital gains distributions, in 2019.

[fanfare]

@alanmaria  correct. All your net gains will reduce your carryover.

If, after that, you still have a loss carryover of more than $3,000. you get a 3,000 reduction in AGI. 

and a 3,000 reduction in the carryover