system
A chat on subreddit /r/wallstreetbets
human
What do you mean the net capital gain/loss is then taxed or deducted? 
  
 Short term gains are taxed entirely differently from long term gains. In fact, if anyone in WSB has long term gains, I guarantee they don't pay taxes on them at all. The bracket for 0% is pretty generous there.

gpt
Short and long term gains are taxed differently, but a net capital loss for either of the two can be deducted against income. Assuming the net is negative. So if you made $1,000 long term and lost $500 short term, you'd deduct 500 losses from the 1000 long term gain to only be taxed on $500 long term gains (assuming you aren't in the poor bracket). But if you net a loss then it's deducted from any income