Long/short cap gain/loss and deductions

[MeatHead]

Morning, folks!

I have about 3K in short term losses from harvesting earlier in the year.  I'm also looking to sell some stock next month that, by then, I'll have held for over a year.  Those gains will be long term.

The questions is this:  Can I deduct the short term losses from my income, rather than offset them with the long term gains?

That is, can I pay 10% on the long term gains and still deduct the 3K from my income, which is taxed marginally at 15%?

From what I've read so far, it's looking like I cannot do this... but I figured it's probably not a terribly uncommon situation and maybe someone out there would know for sure.

Thanks for any help!

[terran]

Nope, capital losses will be deducted from capital gains before regular income.

Also, if you're in the 15% marginal bracket your long term capital gains tax rate is 0% so you're essentially eating up those losses for "nothing."

I have some losses on the books this year along with an individual stock I'd like to sell and put into index funds, but I'm going to take the risk and wait to the new year so I deduct the losses from income this year and then realize the gain at 0% next year.

[MeatHead]

Thanks for the clarification.  I'll probably follow your lead and do the same, waiting for the new year.  It's only two months; what could go wrong?  :)

[Rubic]

Relevant article on Capital Loss Carryover:

http://www.investopedia.com/terms/c/capital-loss-carryover.asp