As an investor, your capital loss deduction is limited to $3000 a year off ordinary income. The remaining capital loss carries forward until used. However, you may deduct 100 percent of your capital loss against future capital gains.

Exception

If you are considered a “trader in securities” or meet “trader status” as defined by the IRS and have correctly filed a timely “mark to market” accounting election (IRS Form 3115 - Change of Accounting Method) or (Properly made an initial accounting election), your capital loss is converted to ordinary loss and deductable up to 100 percent off ordinary income.