Reading a bunch of articles about Long/Short term capital gains offsetting and carryover it's not clear what is the situation on:
- How much short / long term capital losses can you carry over to next year.
- How much carry-over short / long term losses can you apply per year in subsequent years (to regular income and/or new short/long term capital gains).
- What does the $3000 / year rule (for single filing) apply to ?
Basically I'm wondering the following (Assuming the rules for 2019 apply to all years):
- 50k Short term capital loss
- 40k Long term capital loss
- 30k Short term capital gain
- 20k Long term capital gain
Q1: In 2019 I think can only offset 3k the loss against the 100k income, but from which loss, the 50k sort-term or the 40k long-term ? Can I choose ?
Q2: In 2020, will I be able to deduct the full 30k short term gain & 20k long term gain from the last year's losses ? Is there a limit on how much I can deduct per year ?
Q3: In 2020, I'll again be able to offset 3k of normal income against last year's capital loss, right ?
Q4: In 2021 I'll again be able to offset 3k of normal income, correct ?
Q5: Does the $3000/yr rule exclusively apply to the offsetting of regular income ?
For Q2, Turbotax seems to allow me to deduct the entire loss from last year against this year's gain.