I have a $3000 carry over from prior years that will be applied this year. My question is this year I have a realized loss of $1700 on funds I sold and approx 10k capital gains for this year. Am I correct in assuming that the $1700 loss is subtracted from the 10k gain , then the additional $3000 loss carry over applied to give me a total gain of $5300.00 ? If that is the case then I should sell more of my losers (tomorrow) to lower it as much as possible. I never paid attention to tax loss harvesting and trying to take advantage before the end of the year.
Or am I understanding it incorrectly and that only $1300 from the carryover is applied with the $1700.00 loss for a total of $3000 loss from the 10k gain this year and the total capital gain is $7000 .I don't know why I am having trouble understanding this as I think I am making it more complicated than it is.
Comments
"Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income. If you use married filing separate filing status, however, the annual net capital loss deduction limit is only $1,500."
The link below provides information from TurboTax.
Capital Gains and Losses