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vkg is right. You can use an unlimited amount of capital losses against capital gains.

I have been unable to find information on whether this rule is different if you own an LLC or Inc or any other type of entity. Anyone know?

An LLC will depend on how it's taxed. For corporations, the rules are worse. No net capital losses at all. They've got to wait until they have a capital gain to use their losses.

I can see how the IRS is pushing around the little guy ...

While the IRS may have some issues, your complaints need to be directed to Congress. They set the laws. The IRS just enforces them.

... but to think that Wall Street hasn't lobbied against this rule being applicable to them sounds impossible.

The rule is generally applicable to Wall Street firms and virtually every other business as well. However, when a brokerage owns stocks, they are often inventory instead of capital assets. Even you could hold stocks as inventory. It's not easy, and I highly recommend against arranging your affairs to make it so, but it is possible.

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