A capital loss carryover is when you use a realized loss from selling a capital asset, such as stocks or bonds, to reduce your income in a future year. According to Weiss, “Capital losses can only offset up to $3,000 of ordinary income per year, but the remaining loss can carry forward indefinitely. So, a $30,000 capital loss would allow you to offset $3,000 of ordinary income each year. Or, if you have a $10,000 gain the following year, you can offset that entire gain with your remaining loss.”