&gt; Capital losses cannot be applied to normal income in practice in the US either, only to other capital gains.<p>That&#x27;s wrong.<p>You can deduct $3,000 per year in capital losses against normal income.<p>&quot;Generally, realized capital losses are first offset against realized capital gains.  Any excess losses can be deducted against ordinary income up to $3,000 ($1,500 if married filing separately) on line 13 of Form 1040. Losses in excess of this limit can be carried forward to later years to reduce capital gains or ordinary income until the balance of these losses is used up.&quot;<p><a href="https:&#x2F;&#x2F;www.irs.gov&#x2F;uac&#x2F;IRS-Reminds-Taxpayers-They-Can-Use-Stock-Losses-to-Reduce-Taxes" rel="nofollow">https:&#x2F;&#x2F;www.irs.gov&#x2F;uac&#x2F;IRS-Reminds-Taxpayers-They-Can-Use-S...</a>