Hello JA Customer,
Any capital losses that you have must be used to first offset any capital gains. This is the same rule regardless of how much income you have for the year.
If your capital losses exceed your capital gains, then you are allowed to claim an additional loss amount of $3,000 over that amount that can be applied to your other ordinary income. Any remaining losses are carried forward for use on your future years returns.
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Thank you JA Customer
Hello again Lorraine,
Yes, absolutely. You should use all of your gains to first offset your losses and then you only pay tax on the gains you have which exceed your total capital losses. The $3,000 does not even come in to play in that type of situation.
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Thank you Lorraine