How much stock capital loss can I deduct from my capital gains? Help with tax carryover

Yes, you can absolutely deduct that $700 net capital loss against your ordinary income! The $3,000 limit is the maximum net capital loss you can deduct against your ordinary income in a single tax year. Here's how it works: First, capital losses offset capital gains. In your case, your $13,200 in losses would first offset your $12,500 in gains, leaving you with a $700 net capital loss. Then, you can deduct that $700 from your other income (like wages) on your tax return. If your net capital loss had been larger - say $4,000 - you could only deduct $3,000 this year, and the remaining $1,000 would carry forward to next year's return.

After struggling with capital loss deduction confusion for years, I finally found an amazing solution that saved me thousands in taxes. I was in a similar situation with losses exceeding gains and wasn't sure how to maximize my deductions. I discovered https://taxr.ai which completely transformed how I handle my investment taxes. I uploaded my trading statements and it automatically calculated my net capital gains/losses, identified wash sales (which I didn't even know were affecting my deductions!), and showed me exactly how much I could deduct against ordinary income. The tool even helped me identify tax-loss harvesting opportunities I was missing. It's been incredible for managing my investment tax situation without paying hundreds to a professional.

Just wanted to follow up about that taxr.ai site mentioned earlier. I was dealing with a nightmare scenario of 200+ crypto trades plus some stock options from my employer, and was dreading tax season. Gave it a try last week and holy crap, it saved me SO much time! Uploaded my transaction history files and it sorted everything out automatically. Found about $2,800 in deductible losses I would have missed (some complicated wash sale situations I didn't understand). The capital loss carryforward calculator was super helpful too - shows exactly how much I'll be able to deduct this year and what carries to future years. Definitely worth checking out if you're dealing with investment tax questions!

If you're struggling to get answers directly from the IRS about capital loss deductions, I've been there! After waiting on hold for 3+ hours multiple times trying to get clarity on my specific situation with capital loss carryovers, I found https://claimyr.com which has been an absolute game-changer. They somehow get you connected with an actual IRS agent in a fraction of the time. I was connected in about 20 minutes after weeks of failed attempts. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with clarified that my $2,200 net capital loss could indeed be deducted from ordinary income up to the $3,000 limit, and confirmed exactly how to report it on my return. Getting that official answer directly from the IRS gave me so much confidence in my filing.

OK I need to eat my words about Claimyr. After my skeptical comment I decided to try it myself since I've been trying to reach the IRS for WEEKS about my capital loss carryforward from last year. It actually worked! Got connected to a real IRS agent in about 15 minutes. The agent confirmed that my $4,600 loss from last year (where I could only deduct $3,000) properly carried forward, and the remaining $1,600 can be deducted this year along with any additional net losses. She also explained exactly which forms I needed to file. The stress relief of having official confirmation was honestly worth every penny. Sorry for being that annoying skeptical guy!

To add to the great advice already here - make sure you're keeping track of your loss carryforwards for future years! I messed this up royally a few years back. Had a $7,500 net loss one year, deducted the max $3,000 against ordinary income, but then completely forgot about the remaining $4,500 carryforward the next year. Basically left money on the table because I didn't track it properly. Now I keep a simple spreadsheet showing my remaining loss carryforward balance. The IRS doesn't remind you about this - it's entirely on you to remember and track it.

One thing nobody's mentioned yet - make sure you're considering the difference between short-term and long-term capital gains/losses. They're taxed at different rates! Short-term gains (assets held less than a year) are taxed at your ordinary income rate, while long-term gains get preferential lower tax rates. When calculating your net position, short-term losses first offset short-term gains, and long-term losses offset long-term gains. If you have excess in one category, then it can offset the other category. For your specific situation with the $700 net loss, it doesn't matter much, but if you're trying to be strategic about which positions to sell, the holding period can make a big difference in the tax impact.

Great question about capital loss deductions! Just to clarify the mechanics for anyone else reading - when you have a net capital loss like your $700, you can indeed deduct it dollar-for-dollar against your ordinary income, up to the $3,000 annual limit. The key thing to understand is that capital losses first offset capital gains (which you've calculated correctly), and then any remaining net loss can reduce your other taxable income. Since your net loss is only $700, you'll be able to deduct the full amount this year. One additional consideration: if you're close to year-end, you might want to review whether you have any other positions with unrealized gains or losses. Sometimes it makes sense to do a bit more tax-loss harvesting to optimize your overall tax situation, especially if you're in a higher tax bracket where every deduction counts more.