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Message: Long and ugly

No, sorry, Marlinspike is correct. For regular people, capital losses can only be used to offset capital gains.

You can elect to declare that you are a professional trader, in which case you can commingle all types of income and losses. However, beware - you lose the capital gains rate. Now you pay 100% of the regular tax rate on capital gains, instead of 50%. Very few of us would be happy to take that on.

So if you have big realized (you sold the stock) capital losses, you have to have or wait for gains to be able to use them.

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