| Yes! You simply carry over the losses from the prior year less $3,000 taken in that year. The balance is carried over to Schedule D. There is no requirement that you need to have capital losses in the following year in order to carryover the prior year losses into the next year.
For example, lets say you sustained losses of $35,000 in 2006, and there were no capital gains to offset these losses, so you are allowed to deduct $3,000 in tax year 2006. The balance of the losses $32,000 ($35,000 - $3,000) are carried forward to year 2007 no matter what your capital gain or loss situation. If there are no capital gains then $3,000 are deductible in Tax Year 2006.
If you have further capital losses lets say, another $10,000, then $3,000 are deductible from the prior years carryover of losses, and the remaining balance from the prior year would now be $29,000 ($32,000-$3,000) and current year losses of $10,000 are combined to yield a total capital losses carryover of $39,000 which are carried over to Tax Year 2007.
The carryover losses are entered on Schedule D, lines 6 and 14 indicating short term or long term carryover losses respectively. | 
