The maximum short-term capital loss that you can declare in a year is $3,000. You can defer a short-term capital loss for up to 3-years. For example, if you had a short-term capital loss in 2020 of $9,000, you could take $3,000 in 2020, $3,000 in 2021, and $3,000 in 2022. You can also use a short-term capital loss to offset ordinary income even if you dont have a short-term capital gain. 1. Should short-term capital loss be limited to $3,000 a year? 2. Do you agree if there is a limit, should loss be carried over a maximum of $3 years?