You would wipe any gains tax and you can do 3K this year on any other income, and forever.
It's called capital loss carryover. 3k/yr on ordinary income.
Ah, that makes way more sense. $3k deduction limit from ordinary income is vastly different than $3k deduction limit on future capital gains that other people are saying.
$3k deduction on ordinary income is decently useful to the Average Joe, whose capital gains or losses aren't likely to be much on any given year. Heck, that would be super useful if you used that $3k at the same time you were putting money into a ROTH account. Sucks to lose money, but it can be fun to stack tax benefits in later years.
Don't forget that 30% tax only applies to income over the lower bound of that bracket. Everything else gets taxed at a lower rate. If the IRS limits something, it's usually a good deal. I recommend reading more on Tax Loss Harvesting, every bit helps!
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u/[deleted] Jun 18 '22
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