Does a long term capital loss help offset short term capital gains for reducing taxes?
You can use losses to offset gains, no matter which way the losses and gains are. Long term losses can offset short term gains, short term losses can offset long term gains, long term losses can offset long term gains, short term losses can offset short term gains, etc. Net short term gains are taxed at whatever your tax rate is. Net long term gains are taxed at maximum rate of 15% (5% for those in 10% or 15% tax brackets). If losses exceed gains you can deduct up to $3,000 in losses per year against other income ($1,500 per year if married filing separately). Any excess would be carried forward to be used in future year at $3,000 per year.
