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I had heard that you cannot write off more than 3K in losses against gains. Seems absolutely ridiculous.

So, I would like to ask the question of the distinguished members of this board...

If I have taken $12,000 in losses this year and I have $20,000 in gains (all positions bought and sold already - does not include current holdings): What are my options?

I presume I would want to use the 12K to offset the 20K and call it a net gain of $8,000 taxable profits - to be taxed at my income bracket as regular income since they were all held less than a year. Correct or incorrect?

Please advise. I don't hang out on this tax board much, so I am not sure if this has been answered a billion times. It did not show up on my search.

Thanks for any help I can get,
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