Why is it that the (US) government can tax 100% of capital gains but you can only claim $3000 in losses annually?

Question

Why is it that the (US) government can tax 100% of capital gains but you can only claim $3000 in losses annually?

In: 0

Answer 1

You can use any amount of losses to offset gains and can carry those losses forward to subsequent years. $3,000 is the limit you can count capital losses against earned income.