Questions tagged [capital-loss]

A capital loss is the loss incurred when a capital asset decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price.

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2 answers
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What's the point of the wash rule?

I don't understand the 30-day wash-rule. Someone please set me straight. So let's say I purchase 100 shares of Hot Stock X, for $100 apiece. So $10,000. Let's say that the stock goes down 50% on a ...
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4 votes
1 answer
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Can I claim a capital loss on property I gifted?

I had some cryptocurrency with an unrealized capital loss that I gave to someone as a gift. My adjusted cost basis just before I made the gift was $4,000. The fair market value (FMV) of the ...
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1 answer
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Where do I roll over capital losses from a previous year on my tax forms?

I use TurboTax and a couple of years ago I lost money in the stock market. I haven't made any money in the stock market since then but plan to start investing again and wanted to make sure that the ...
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3 votes
2 answers
1k views

What should one do with excess capital losses?

What should one do with excess capital losses? Suppose I need to sell some stock to fund a down payment on a house, and I have long term gains, short term gains, and long term losses to choose from. ...
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0 answers
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can nonresident alien (NRA) stock loss carryover/be calculated as cost basis?

I am a nonresident alien NRA in California. I am an ordinary employee in a tech company, that's my job. I have no business. Aside from my job I trade stock by myself. So if I have capital gain, my tax ...
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0 votes
1 answer
220 views

I realized I am too stupid to buy individual stocks, should I use "robo-advisor" consulting?

First the facts: I opened a Swissquote account in mid 2018 (a broker similar to Robinhood in the US). My balance today: loss of -1'500 CHF, with a total investment of 26'000 francs. Especially the ...
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2 votes
2 answers
63 views

How do wash sales work when the acquisition of substantially similar stock is done *before* the sale?

I understand wash sale rules in the simple case: If I sell stock at a loss and then buy it back in 30 days or less, I can't take a deduction on the loss and must instead add the loss to the cost ...
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1 vote
1 answer
62 views

Restrictions on rounding proceeds/basis when computing capital gains tax?

When I upload Form 8949 transactions using TaxAct it rounds the proceeds/basis for each individual transaction to the nearest dollar. In other words if I make one transaction buying a stock for 0.51 ...
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37 votes
2 answers
8k views

How do I realize tax losses on a cryptocurrency I can't sell?

I have a bunch of dead coins that don't have any liquidity on exchanges anymore. Is there a way to sell them or report them to the feds somehow so I can harvest my tax losses? I read about a way that ...
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0 votes
2 answers
59 views

Is my tax software correct when it automatically deducts $3000 from my carried forward cap gain tax losses despite I get a refund?

I am ending up with a refund for 2021 due to child credits but my tax software automatically deducts $3000 from my carry forward amount anyway (see line 7), is this correct? If I do not need to pay ...
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1 vote
2 answers
75 views

How to record capital losses from 2015 to offset against capital gains of current year (2022)?

In 2015 I incurred a 10k capital loss. I haven't made much in capital gains from that year since so I haven't declared the losses on my 1040 in 2015 or any year since (I have a 1099 from 2015 to prove ...
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1 vote
3 answers
199 views

Is it generally advantageous to offset capital gains with losses?

Related to these two questions. My question is, if I have $1000 in short-term capital gains and, for the sake of simplicity, say I would have to pay a 20% capital gains tax - $200. Is there any reason ...
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1 vote
1 answer
187 views

Tax loss-harvesting with Crypto

There are headlines floating around about enforcing wash sale rules for crypto capital gains and losses, this prompted me to look into tax loss-harvesting, and it turns out I don't understand it at ...
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0 votes
3 answers
208 views

If I buy a property that has a home on it and subdivide the land and sell off the home for less than I bought it for, is that a capital loss?

I want to buy a home that sits on 1 acre for $1m (in the USA). I want to subdivide the land into two pieces and keep the new 0.5 acre parcel to build a home on for me. I have no interest in keeping ...
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0 votes
1 answer
84 views

Does it often make sense to sell an equity while it still is a short-term loss?

Let's imagine Juanita. Juanita pays taxes in the USA. Juanita bought equity XYZ on January 1 and sold it for a profit of $100 a month later. Thus, it was short-term gain. Juanita also bought equity ...
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1 vote
1 answer
51 views

Is there capital loss on called shares

I bought 100 shares of XYZ at $12.35 for a total cost of $1,235. I then sold an $11.50 call for $1.15, collecting $115. If assigned, will my sale price for the 100 shares be $1,150 realizing an $85 ...
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  • 179
1 vote
1 answer
113 views

Is loss disallowed after wash sale involving IRA, but rebought in traditional brokerage first?

I've read horror stories about someone selling stock A for a loss in a traditional brokerage and rebuying the stock in an IRA. Their basis in their IRA does not ever adjust and they cannot ever ...
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0 votes
2 answers
48 views

capital gain/loss sequence

sorry if this has been already asked but i'm having trouble translating from layman's language to IRS-speak. Assume I buy a security (eg: SPY) in 2020 at $10, then buy another one share in January ...
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1 vote
1 answer
37 views

Where can one view whether one has capital loss carryover from last year on one's tax forms from last year?

I'm filing for my US taxes as a US lawful permanent resident, and I'm trying to determine whether I have any capital loss carryover from last year. Where I view this information somewhere in my tax ...
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38 votes
12 answers
18k views

I bought my first shares in life and they dropped 25% in a very short time. What to do?

I bought Coinbase stocks shortly after IPO. Now my loss at 25%, however, I am in the fortunate position of not being dependent on the invested money. I would like to know in retrospect what I and ...
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1 vote
0 answers
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As a new resident alien, can I harvest capital gain losses from previous years when I was a non-resident alien?

In the year 2020, I switched from being a non-resident alien (NRA) to a resident alien (RA) for tax purposes. I'd come to the US in 2015 as an international student (F-1 visa). For NRAs, using the ...
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3 votes
0 answers
51 views

Can I reduce the capital gain on which I have to pay taxes if the previous year I had big losses?

Suppose this year I have a capital gain of 200 thousand pounds, but last year I had a loss of 50 thousand pounds... this year can I pay taxes only on 150 thousand pounds of capital gain? And what if ...
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0 votes
0 answers
64 views

Giving stocks as a gift to offset losses

Suppose I have accumulated some stock exchange losses in the past. My parents gift me some stocks. Do I get to realize capital gains when I sell those stocks? If my parents bought the stock for $100 ...
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3 votes
3 answers
652 views

How do I carry over capital loss to the next year?

I understand it can be done... I don't need to know that. ...But I don't understand the mechanism used to track and carry over the capital losses for future years... I am entering my stock trades into ...
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0 votes
1 answer
47 views

What is the purpose of placing a minimum value for Stop Loss for some positions (no shorting, no leverage)?

Nasdaq has just observed (not sure if it is finished yet) a major rotation that led to many stocks to fall (especially tech and "green" ones). As an eToro user, I have noticed that during ...
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0 votes
1 answer
55 views

Selling RSU below Settlement Price

I have 10,000 RSUs vested and released recently. 42% of Shares were sold at $15 per share when RSUs were released but trading window was closed. When trading window finally opened, I sold all my RSUs ...
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0 votes
4 answers
295 views

Is losing money on stocks actually simpler than gaining money?

Suppose that I want to invest X amount of cash in stocks, with the goal of doubling the value of my portfolio inside a given time period. This is notoriously hard, in particular there is no full-proof ...
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2 votes
1 answer
97 views

Lost A Company In a Judgement

I inherited a company from my father. Not sure what the valuation was. I didn't have any money invested in the company, but the company was sued and we lost it in lieu of not being able to pay the ...
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1 vote
3 answers
116 views

Wash Sale Question [duplicate]

It's Jan 1st and I buy 1 share of XYZ for $10. Jan 2nd I sell it for $9. Jan 3rd I buy it back for $9. Jan 4th I sell it for $8. Final loss: -$2 I understand this is a wash sale. But in my year end ...
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6 votes
1 answer
118 views

Do I get a tax credit for my dependent’s short term capital loss?

My father is not working and is my dependent. I have him $5,000 cash as a gift in 2020. He “invested” it in stock market (bought an option for something), and lost it all. If he had any income, then ...
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2 votes
1 answer
191 views

Losing money on a deep In the Money call

Suppose that I sold a call option at $1/share on XYZ at a strike of $100. The holder of the call exercised the option when the market price of XYZ is $110. Now I need to buy 100 shares at $110 and ...
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2 votes
1 answer
203 views

Do I have to pay taxes on my capital gains when they're still less than my carryover capital losses?

I am based in the US. Let's say that in 2019 I bought some stocks and sold them in 2019 for a loss of $20k. So in each year starting from 2020, I am able to deduct $3k from my taxable income until all ...
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0 votes
1 answer
59 views

Covered call buy back

I sold a covered call for $1000. If I buy it back for $5000 before the expiration date, will the $4000 considered a short term loss and will it offset my short term gain and long term gain? I do not ...
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1 vote
1 answer
209 views

Is this a superficial Loss? Stock Sale and Put Option [duplicate]

I sold 250 shares of a stock at a loss of (-1,000). 2 weeks later bought a single put contract (100 shares) n the same stock. If I sell the put option for profit a few days later, is this a partial ...
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0 votes
0 answers
71 views

Why is capitalization because of revenue fall important?

I have a question: Why is extra capital important in case of revenue drop, either quarter or annual revenue? I'm asking: what are the benefits of getting large amounts of extra capital if revenue drop ...
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5 votes
2 answers
621 views

Do I need to file a tax return as a dependent if my net capital gains are close to $0 but my trading volume is very high?

As per the IRS tax code, it states that a single dependent whose unearned income is less than $1100 and whose earned income is less $12,200 does not have to file a tax return. I am a student, and I ...
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1 vote
1 answer
119 views

If one has short- and long-term capital losses and gains, can one harvest short-term losses to be deducted against short-term capital gains in the US?

In year 2020 I have: - short-term capital losses = 2000 USD - long-term capital losses = 3000 USD - short-term capital gains = 2500 USD - long-term capital gains = 5000 USD Can I harvest the ...
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1 vote
1 answer
126 views

When harvesting short-term loss, can the losses be deducted against my income if I don't have short-term capital gains, only long-term capital gains?

Regarding tax-loss harvesting in the United States, https://www.moneyunder30.com/profit-from-tax-loss-harvesting (mirror) mentions some priorities between short-term capital gains and long-term ...
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1 vote
1 answer
145 views

Is there any upside in harvesting tax losses on long-term losses instead of short-term losses?

Assume that one has the choice between taking long-term capital losses and short-term capital losses, and assume that, since the year hasn't ended yet, one doesn't know all the short-term and long-...
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3 votes
2 answers
240 views

Wash sale rule applied to quarterly estimated taxes?

I'm looking to pay estimated quarterly taxes. Do wash-sale rules apply to quarterly estimated tax payments (June 1st – August 31st with a due date of September 15th for this past period), or do they ...
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1 vote
1 answer
61 views

Adding stock loses to taxes

In USA there is normally about 12k deduction for a single person filling taxes. If I have 1k losses in stocks can I take the 12k default deduction + 1k? I know there is a 3k limit to stock losses but ...
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1 vote
1 answer
137 views

Capital Losses from more than 3 years ago unclaimed

I had capital losses from 2014, 2015, and 2016, but here it is 2020 and I haven't claimed any capital gains or losses on my US tax returns since then. Is there anything I can do to get a benefit from ...
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1 vote
1 answer
50 views

In what order are Short Term Capital Losses applied when dealing with Municipal Bond Interest, Qualified Dividends, and Ordinary Income?

Let's say I have a net $100 in Short Term Capital Losses and no Long Term Capital Gains to offset. Let's say I also have $100 in Municipal Bond Interest Earnings, $100 in Qualified Dividends, and $100 ...
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1 vote
1 answer
57 views

Offsetting long term capital loss in India

How do I offset long term capital loss on equities in India?
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-1 votes
1 answer
141 views

Wash Sale Rule --> disallowed loss carry forward in this particular scenario where I buy replacement shares just *before* selling the entire position?

Please see the example below illustrating a scenario where I buy replacement shares before selling the entire position. My questions are: If I don't buy replacement stock for 30 days after May 8th (...
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1 vote
1 answer
59 views

Can long term capital loss be claimed in India when shares are moved to escrow account for dissolution

I am an Indian resident taxpayer. I had shares of Yahoo which were traded as Altaba Inc. (AABA), held for more than 4yrs in a US demat account. The company has filed for dissolution last year and ...
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2 votes
1 answer
203 views

Do short term capital losses have to be used against long term capital gains for tax purposes?

As explained in this article, I understand that short term capital losses can be used to offset long term capital gains: Long-term gain with short-term loss Again we have to consider two ...
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-5 votes
1 answer
120 views

When can you earn more by selling a losing security and buying it back at lower price?

My goal is just to maximize capital gain on stocks and options, regardless of Wash Sale Rule or tax. My grandparents live in Canada. I'm not trying to sell to minimize taxes. I quote one example ...
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1 vote
1 answer
51 views

Capital losses treatment

I incurred capital losses as a resident alien in the USA. Now, having left the USA, I am a non-resident alien and I am given to understand that I do not have to show capital gains or losses on the tax ...
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  • 1,034
2 votes
1 answer
133 views

Do long term capital losses offset short term capital gains?

Assuming I had only two transactions this year: 1) Sale, long term, A-company stock resulting in a $10,000 loss 2) Sale, short term, B-company stock resulting in a $10,000 gain Does this mean, my ...
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