Can I use a long-term capital loss to offset a short-term capital gain before using it to offset a long-term gain?
No, long-term capital gains and losses must first be combined to arrive at net long-term gain or loss before the result can be netted against the net short-term gain or loss. If you follow the Form 1040, Schedule D, Capital Gains and Losses, Parts 1 and 2, line-by-line, the form will perform the netting for you in this order.
No, long-term capital gains and losses must first be combined to arrive at net long-term gain or loss before the result can be netted against the net short-term gain or loss. If you follow the Form 1040, Schedule D (PDF), Capital Gains and Losses, Parts 1 and 2, line-by-line, the form will perform the netting for you in this order.
