Lone Term Stock loss vs. Long term stock Gain

Hi Guys, I apologize. I think I have asked this before, but I cannot find it. If I sell stocks at a Long Term Gain (let’s say I gained $10,000). Then I sell stocks at a Long Term Loss (Let’s say Loss of $15,000). Both sales in the same year – 2024. Then I can take that loss against those gains, and after that would have the extra $5000 Loss to carry forward into the next tax year, of course $3000 can only be taken in the next tax year. I was confused about the $3000. I am not limited to taking only $3000 in that first year, I can take the whole $10,000 loss against the $10,000 Gain, and then carry over the $5000. Is this correct? Thanks so much.

Close. You’re saying $15,000 loss, $10,000 gain. You first net the two together to get to a $5,000 loss. Then, you can use $3,000 of that net loss to offset ordinary income, leaving $2,000 of losses to carry over to the next year.

Note that if you’re married and file separate returns, I believe you each only get $1,500 to offset ordinary income.

Home Fool


Sorry, that’s wrong.

$3000 in your excess loss would be applied to your ordinary income, and then additional excess losses (in this case, $2000) would be carried forward to the following year. And yes, this information has been given to you before in this thread Carry Forward Loss, if I only need the standard deduction this year? - Financial Planning / Tax Strategies - Motley Fool Community

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