TAX on stock sale question

NEW -> Contingent Buyer Assistance Program
O

OCMan_IHB

New member
If I made $10k on stock AAA sale this year, can I sell stock BBB WITH $10k loss to offset the gain? Or am I stuck with capital gain tax on $10,000 and need 3 years or more to deduct stock loss at $3000 per year? Thank you for your input in advance.
 
[quote author="OCMan" date=1233135262]If I made $10k on stock AAA sale this year, can I sell stock BBB WITH $10k loss to offset the gain? </blockquote>


The basic answer to the question is yes. Restrictions on the deduction of losses applies to net loss, not specific losses on individual investments.
 
[quote author="OCMan" date=1233135262]If I made $10k on stock AAA sale this year, can I sell stock BBB WITH $10k loss to offset the gain? Or am I stuck with capital gain tax on $10,000 and need 3 years or more to deduct stock loss at $3000 per year? Thank you for your input in advance.</blockquote>


I hope you already sold BBB for a loss. The fact you're asking in january suggests you may not have sold already? You can only offset in the same calendar year.
 
rtlguru is correct.

If you sold in tax year 2008, depending on the type of sale, you will pay either short or long term cap gains or normal income at marginal tax rate. If you sell for a loss in 2009, that loss can offset any gains in 2009 or may be used to deduct $3000 from normal income and the remainder used to offset gains in future years or used to offset normal income at a rate of $3000 per year.
 
You must log in or register to reply here.
Back
Top