Am I understanding this correctly? Real case scenario. If I incurred a loss of $120,000 in a portfolio, and I have another portfolio held at another brokerage firm, and it shows a gain of $100,000 from my original cost basis.
And I want to liquidate the portfolio with the gain, as it is all individual stocks that I want to get rid of and change those individual stocks and be able to buy index funds (and move to Vanguard), it will trigger a gain of $100,000 for me for the year. Yet my loses of $120,000 on the books (carried over) can not offset this $100,000 gain. I can only offset the $3,000 of that gain per year. Is that correct?
Is the $3,000 just reducing my paper gain down to $97,000? If this is correct, than what would be the best way to accomplish my goal of changing the nature of my portfolio as well as moving it?
And I want to liquidate the portfolio with the gain, as it is all individual stocks that I want to get rid of and change those individual stocks and be able to buy index funds (and move to Vanguard), it will trigger a gain of $100,000 for me for the year. Yet my loses of $120,000 on the books (carried over) can not offset this $100,000 gain. I can only offset the $3,000 of that gain per year. Is that correct?
Is the $3,000 just reducing my paper gain down to $97,000? If this is correct, than what would be the best way to accomplish my goal of changing the nature of my portfolio as well as moving it?