His STCG will be taxed at his ordinary income tax rate, and his LTCG will be taxed at a maximum rate of 20%. ... For this capital loss, she can take a $3,000 deduction against her other income, and she can use the remaining $500 to offset her capital gains next year.

Can Stcg be set off against LTCG?

Long-term capital loss will only be adjusted towards long-term capital gains. However, a short-term capital loss can be set off against both long-term capital gains and short-term capital gain. Losses from a specified business will be set off only against profit of specified businesses.

Can short-term capital gains be offset by capital losses?

Short-term capital gains distributions from mutual funds are treated as ordinary income for tax purposes. Unlike short-term capital gains resulting from the sale of securities held directly, the investor cannot offset them with capital losses.