Capital losses and gains, short term and long term?

Question

So, here’s the scoop.
 I have some short term capital losses that I’ve been carrying forward at the $3,000 per year amount. I have some long term (unrealized) capital losses, also. This year, I expect to have a fairly large amount of short term capital gains.

My question is threefold:
1. If I realize my long term capital loss, will it offset dollar for dollar my short term capital gain?
2. Am I able to accelerate the usage of the prior short term capital loss? Meaning use the full sum at once, rather than just $3,000 per year. 
3. What are some easy ways to legally avoid or defer short term capital gains taxes?

Anonymous · Answer

So, just to confirm, all these years you have been claiming the $3000 capitol loss carry forward you have had ZERO gains?

As Stephen points out, any other capital gain absorbs more of the loss.

StephenWeinstein · Answer

Each year, you can use $3000 plus the amount of your capital gains for the year.  Meaning you can use an unlimited amount against capital gains but you can use only the $3000 against other income.

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Capital losses and gains, short term and long term?

2 Answers