These pages explain rules relating to capital losses.
Loss Limitation and Carryover
Capital losses can be used to the extent of capital gains plus $3,000, with any portion that remains unused because of this limitation carried over to the next year.
Capital Loss with Little or No Income
It may appear that the capital loss is going to waste, but you may be able to carry the full amount to the next year.
Capital Loss Whipsaw
Because of the capital loss limitation you can face a situation where your taxable income is greater than your economic profit.
Claiming a Loss from Worthless Securities
A stock that’s lost nearly all its value can be worse than worthless because of the difficulty inclaiming a deduction for the loss.
The Wash Sale Rule
This rule that can prevent you from deducting a loss if you replace the investment you sold is surprisingly complicated, so we have multiple pages dedicated to the topic.
Loss on Sales to Related Persons
You report gain but not loss when you sell to a close relative or to a business or other entity that’s treated as related.