I'm dipping my toe into tax-loss harvesting for the first time this year, and wanted to check with you all about something. Investopedia says the following:
"In any given year, there is no limit on the amount of capital losses
that can offset capital gains. However, only a maximum of $3,000 net loss can be deducted from ordinary income; any excess loss may be carried forward into future tax years."
I interpret this to mean that if I have a long-term capital loss of $6,000 in 2009, I can set $3,000 of that loss against our 2009 personal income. The next $3,000 can go against any 2009 long-term capital gains (if any), and any remaining capital gains will carry forward to be set against 2010 long-term capital gains.
Just wanted to be sure that it's OK to set losses against both
personal income in the same year.