### Comment:
Ah.  
  
 I don’t really understand how short and long term gains are deducted either. I assume short term losses can be deducted against income, what about long term losses? Are they only deductible against long term cap gains?

### REPLY:
Short term losses are deducted from short term gain, and the same for long term. The net capital gain / loss is then taxed or deducted. So if for the entire year you netted a loss of capital (short or long) you can deduct up to 3k from any other income.

### END.