Part III of Form 2438 is used to calculate the net capital gain or loss. This is done by netting the total long-term capital gains against the total long-term capital losses. The result is the net long-term capital gain or loss. If there is a net long-term capital loss, it can be used to offset capital gains in other years or can be deducted up to $3,000 per year against ordinary income. Any remaining loss can be carried forward to future years.