Capital Gains Lost On Stocks $3,000?

Question

I understand the cap is $3,000 per year on securities capital gains loss . However, I also heard that you can assume all losses (greater than the $3,000 threshold) in one year by combining them. Is that only when you sell a property that you can declare greater losses. Or are they referring to different losses (e.g. losses with renting it out, etc). I am confusing the two.

Answer 1

And sorry, but your question is confusing me.

For capital losses (schedule D) you combine all of your gains and losses, and if the amount is $3000 or less, you show that amount for the current year. If your net capital loss is over $3000, then you show $3000 loss for the current year, and carry over any extra to future years, where you net it with capital gains and losses from that year, then take $3000 of loss each year until your carryover is exhausted.

If that didn't answer your question, please post again with a little more detail and someone will answer you.

Answer 2

When you say sell property, do you mean investment property or selling your house?

Investment property losses can be netted against other investment gains. However, if you have a loss on the sale of your house, this loss is not tax deductable.

BTW, Judy's answer is correct.