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First..."realized" losses...not just a drop in value, a loss at sale....you must realize the loss. Capital losses are available against Capital gains...(ther are short & long term holding considerations too), and then $3000 are available against oridinary income. Any amount of losses not used can be carry forwarded and used as above, incl the $3000 year, until used up. Hence, your not limited...and if you make some good gains this year (or next) the losses will be available against them...to an unlimited amount. It is the excess that is limited.

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16y ago

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