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What is the maximum amount of capital losses that I can deduct in a tax year? |
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When an individual taxpayer experiences capital losses from the sale of assets held for investment, both long and short term, they are allowed to use those losses to offset any capital gains from similar sales. If you still have a remaining capital loss after offsetting short and long-term capital gains with their respective capital losses, then you can use $3,000 of the losses to offset your ordinary income. Any remaining loss is carried forward to the future tax years, until fully used. For more information on how to treat overall capital losses from the sale of assets held for investment, see IRS Publication 550. |
