If I have both crypto and stock loss for the year, can I deduct $6000 ($3000 each) or just $3000 (IRA, income)

[Brom]

If I have both crypto and stock loss for the year, can I deduct $6000 ($3000 each) or just $3000?

[rjm1cc]

You can deduct losses up to the amount of your realized gains for the year plus 3,000.
So no you cannot deduct 6000 in your example.

[reed303]

3000 is the limit on the total of losses. See Part III of Schedule D, Line 21. But you can carryover the 2nd 3000 to next year.

https://www.irs.gov/pub/irs-pdf/f1040sd.pdf

[AnnaGWS]

Originally Posted by Brom

If I have both crypto and stock loss for the year, can I deduct $6000 ($3000 each) or just $3000?

Short-term or long-term losses?

Do you have $6000 in stock and/or crypto gains to offset the losses?

If not, you can deduct $3,000 from ordinary income this year and carry over $3,000 for next year.

[FL_Expert]

Did the limit decrease to $3000 recently? In the past I’ve deducted $6000.

[reed303]

Originally Posted by FL_Expert

Did the limit decrease to $3000 recently? In the past I’ve deducted $6000.

Well, according to the 1040 Schedule D form for 1980, its been 3000 since then

See Line 21B of Part III here:
https://www.irs.gov/pub/irs-prior/f1040sd--1980.pdf

[FL_Expert]

Originally Posted by reed303

Well, according to the 1040 Schedule D form for 1980, its been 3000 since then

See Line 21B of Part III here:
https://www.irs.gov/pub/irs-prior/f1040sd--1980.pdf

Thanks, I must have been thinking of the IRA contribution limit. I’m off my tax game right now, glad to have people like yourself to set me straight.