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Thanks for your reply VKG,
Then there is no case where you have to pay taxes on an amount of LT or ST capital gains that exceeds your net capital gains.

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No, nobody said that. VKG correctly stated that you first net all your short-term transactions against each other, and the same with the short-term transactions.
" Capital Gain/Losses are offset in the following order:
1.) Long Term Gains against Long Term Losses
Short Term Gains against Short Term Losses
2.) Any remaining Gains can be offset against either type of Capital Losses
Long Term Gains against Short Term Losses
Short Term Gains against Long Term Losses
"
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But you have to realize that when all this is done, you're either going to have a net capital gain or a net capital loss.

If it's a net loss, it doesn't matter whether it's long-term or short-term, really. It goes on page 1 of your return as a negative number, and it's limited to -$3,000 either way.

But if it's a gain, it matters a lot. It's included in your gross income either way.
And a net short-term capital gain is like ordinary income.
But a long-term gain is subject to tax at a reduced rate, from zero in the lowest tax brackets to 20% at the highest.

Bill
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