Offsetting Short Term and Long term gains in the same year.

Forum|Forum|1 year ago
February 27, 2025
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Can either excess short term losses and/or excess long term gains offset the other in the same tax year? (i.e if I had excess long term losses of say $50K in 2025, but short term gains of $75K, would my net be $25K?

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JamesG1

The term 'excess' is confusing. I prefer the explanation in this TurboTax Help.

Capital losses first offset losses of the same kind, short-term against short-term or long-term against long-term.
Net losses of either type can then be deducted against the other kind of gain.

In this example, ST capital gains of $1,913 are reduced by LT capital loss of $8,902 resulting in a loss of $6,989

Finally, If you have an overall net capital loss for the year, you can deduct up to $3,000 of that loss against other kinds of income, including your salary and interest income.

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