So if, for example, you actually had $70K of capital losses but you made a mistake and claimed $100K. Then you would deduct $4k from your taxes and carry forward $96K, of which $66K were still real and $30K were mistake. If you realize the mistake, you can drop the extra $30K.

IRS reports are very complex for active traders. The sales line looks like a huge sum, because it adds up the total of a lot of short term trades. Doesn’t really mean anything significant in the real world.

Was the idea of “saving” close to the idea of “investing”?? Couldn’t tell if that was the intended meaning.