If you have capital losses that exceed your capital gains in a given tax year, you may be able to carry over the excess losses to offset capital gains in future years. This is known as a Capital Loss Carryover.For example, let's say you have $10,000 in capital gains and $15,000 in capital losses in 2020. You can carry over the $5,000 in excess losses to offset capital gains in future years.Capital loss carryovers can be carried forward indefinitely. However, you can only use $3,000 of capital losses to offset ordinary income in any given tax year.If you have significant capital losses, it's important to consult with a tax advisor to determine the best way to use them.
