capital loss carryovers

Pick winners.

Each year the carryover goes to Schedule D to be netted with that year's capital gains and losses. So, if you start the year with a $20,000 loss carryover and have a net $10,000 of gains realized during the year, you apply $10,000 of the carryover to the gains and $3,000 to other income, leaving you with $7,000 to carry to the next year.

-- Phil Marti Clarksburg, MD