The IRS website says "If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000"

So Does this mean that if I invested $9000 into a company. And then say the company goes bankrupt and I lose all $9000 dollars.
And assuming I made no Capital Gains, does that mean that for the next 3 years, I can get $3000 in deductions on my taxes until  the Loss = 0?


Doesn't that sound too good to be true? If that's true when that means for $3000/year, anyone can play with investments and no suffer any consequences?
I thought investing was a dangerous thing to do but if you can just deduct all your losses, then that's like giving you a "free play ticket" of $3000/year

Thanks!