Skip to main content

What Is the Capital Loss Carryover Rule?

If a taxpayer's net capital losses exceed the $3,000 limit that can be deducted against ordinary income in a given year, the excess loss is carried forward indefinitely to offset capital gains in future years. The loss maintains its character (short-term or long-term) when carried forward.

How Can an Oracle Be Manipulated in a Price Feed Attack?
What Is the Income Requirement for an Individual to Qualify as an Accredited Investor?
Is Staking Reward Income Treated as Ordinary Income or Capital Gain?
Can a Crypto Trading Loss Be Deducted against W-2 Income?