Carlos had $5,000 in capital losses last year and $8,000 in capital gains this year.He will include with (or exclude from)his other income this year

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Carlos can offset his $8,000 in capital gains this year with the $5,000 in capital losses from last year, leaving him with $3,000 in net capital gains. However, the IRS allows individuals to deduct up to $3,000 ($1,500 if married filing separately) of net capital losses against other income each year. Since Carlos has already used his capital losses to offset his capital gains, he is left with $3,000 in capital gains to include with his other income.

Carlos Had $5,000 in Capital Losses Last Year and $8,000