Here are my ST and LT Capital Gains/Losses for past 2 years:

2011 ST Loss = 10k
2011 LT Gain = 5k
2012 ST Gain = 20k
2012 LT Gain = 10k

What I would want to do is NOT net the ST Loss with LT Gain in 2011 and just pay the LT Cap Gain Tax on 2011. Then carry over the ST Loss from 2011 into 2012 (after deducting the 3k against ordinary income) against the 20k in ST Gains.

I understand that typically people net NET ST Losses with NET LT Gains but can I keep separate and pay LT Cap Gains tax and the carryover the ST Loss into future years to offset higher tax ST Gains? Or is this disallowed.

Rgds

In 2011, you have LT gain of 15k and ST gain of 10k. This is the only choice.

MukatA, The 2011 ST Loss is 10k. The question is can I carry it forward to 2012 without applying it against the 5k LT Gain in 2011.

I believe the rule is you can net ST Loss in 2011 against LT Gain in 2011 and then carry forward balance. But can I get choose to carryover full ST Loss from 2011 and pay LT Cap Gains Tax on the LT Gain in 2011. This way I would use the FULL ST Loss in 2011 against the ST Gain in 2012.

Rgds