Ozonewanderer wrote:I think I understand. So if I rephrase the question: so long as my total capital losses exceed my total gains, then it doesn't matter if my gain is long term or short term or both, correct?
This is almost correct. If you have $10,000 in long-term losses and $10,000 in short-term losses, and you have a $10,000 gain this year, you will carry over $7000 in capital losses to next year. However, if your gain this year is long-term, it will offset the long-term losses, and the loss you carry over to next year will be short-term; if your gain this year is short-term, the loss you carry over to next year is long-term.
And whether you carry over a long-term or a short-term loss to next year may affect the tax you owe next year, if you have both long-term and short-term gains in the same year and your gains exceed your losses.