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The way I look at this situation, you have few options since cap losses are non transferable:
1. If someone very generous wants to gift you appreciate assets like stock, you could sell and offset with your losses. Would need to be a bonafide gift
2. Invest in something that produces income treated as capital gains. This could be appreciating assets of something that creates Sec 1256 gains (futures). Of course, this comes with investment risk
3. I mention this one half-jokingly, marry someone with appreciated assets. Of course, this should be a legit marriage...
You are really very limited and it's a shame that capital losses cannot offset ordinary income.
1 is a very serious answer and it happens between family members often, and can be the other way around with you selling appreciated assets to family at FMV. In fact there are articles on it. See the article below.
3 was stated tongue in cheek as stated since it would only apply to people in a very specific situation.
I think my 2nd point was not fully appreciated. The goal was to demonstrate that there are investment structures that can produce income treated as capital gains that the layman would not consider capital gains. Section 1256 gains is a very popular treatment that can be used to munch up some of those capital losses. These can be short-term investments in futures or FOREX. Alas, there is investment risk, but the point being you do not just need to limit yourself to buying and selling stock to produce capital gains.
I get what you are asking about the "some type of investment that people make to defer their taxes " are essentially trying to find a way to use your losses to someone else's advantage, and financially benefit from it. Please tell me if I am wrong. With personal cap loss carryovers, other than describes above, there would be no such way while staying within the law.
I hope I have been helpful
1. Yes, using short term losses to offset long terms gains is usually bad, but beats the heck out of using $3K a year for the rest of your life. If you had stated you had limited losses, I would not have proposed this, but you said you had more losses than you could probably use in your lifetime. I'd take the essentially tax free income using my losses.
2. I do not have specific investment advice for you. I do not give investment advice. I am stating some types of investments you could consider in you effort to utilize your capital losses.
3. I'm not sure I will satisfy you question with my answer here. There is no legit way to do what are you trying to do. The IRS would deem that a disguised transaction (no economic substance)) in a heartbeat if looked at. If there were a legit way, there would be articles splattered all over the internet by reputable companies about it. Avoid the person who wouldn't recommend a structure in public.
I hope this answers you question. if so, please rate. If not, let me know and I will opt out.
Other than the couple of side discussions of asset transfers through gifts and sales, that really is the answer. I cannot create an answer that does not exist. Please let me know if you would like me to opt out and let another expert have a go.