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Capital loss deduction is limited to 3K per year. The rest will be carried to future years. The loss will most likely not reduce your salary to 0. You can use the looses to offset your other current of future capital gains. For instance if you have 25K in capital losses and only be able deduct 3K, you will have 22K capital loss carryover. Next year, when you sell a stock with a profit of 15K, you can use your capital gains carryover to eliminate the gain, claim additional loss of 3K and carryover 4K (22-15 - 3) to following year.
You can use capital gains from sale of stocks, sale of house or other investment property. All gains reported on Schedule D can be offset by the loss carryover.
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