I have different investments in two different brokerage accounts A and B.

Investments in A are up 500 and in B are down 500. If I were to sell both of these in the same year (without any other losses / gains in the year) would I need to pay any taxes on the 500$ gain at all (due to the 500 balancing it out)?

The 500$ are currently subject to capital gains tax. Will this be deducted before the loss is taken into consideration?

  • What country are you asking about? Tax rules vary. – Chris W. Rea Jan 5 '19 at 12:58

If the situation is as simple as that, the gain and the loss would offset and there would be no taxation or deductions. It's a break even.

The only possible complication would be if there was a purchase of substantially identical securities to B withing 30 days (before and after) realizing the loss, creating a carry forward wash sale violation on the sale of B. Then part or all of the deduction of the $500 loss could be delayed until the following tax year, leaving you with taxes to pay on part or all of the $500 gain

  • This is all correct. One thing I would add is that you still must report both the loss and the gain on your taxes (Schedule D in USA), otherwise IRS will flag it... one year I failed to report a buy and a sell of the same stock at exact same price. – Keith Knauber Jan 13 '19 at 22:44
  • All closed trades must be reported unless you are professional with Trader Tax Status which is then MTM accounting. – Bob Baerker Jan 13 '19 at 22:50

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