This subject seems to need some detailed clarification unless I've made the wrong determinations. Are these statements true?
1.On your tax return for any given year you can cancel out taxes due on capital gains if you have equal or more in capital losses.
2. If you have more capital losses than gains in any taxable year you can use up to $3000 in carryover losses to reduce any other source of income for that year.
3. If, in subsequent years, you still have a balance in carryover losses they can be used to reduce taxable income in amounts of up to $3000, until depleted.
4. The $3000 limit on carryover losses has nothing to do with the total allowable off set of capital gains by capital losses in any one tax year. It applies only to the carryover portion if losses exceed gains in that particular year.
I've read numerous articles at many different website and it appears that there's a lot of confusion regarding the $3000 amount. Most people seem to assume that it is a limit as to how much in capital gains can be offset by capital losses each year, unless of course I'm wrong in my statements above.