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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1answer
125 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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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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79 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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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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68 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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2answers
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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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1answer
32 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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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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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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50 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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63 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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559 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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1answer
45 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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1answer
52 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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4answers
278 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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93 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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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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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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1answer
171 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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1answer
189 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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1answer
52 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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1answer
162 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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68 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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601 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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70 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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1answer
92 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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1answer
94 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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2answers
196 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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1answer
59 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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122 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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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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1answer
47 views

Offsetting long term capital loss in India

How do I offset long term capital loss on equities in India?
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1answer
92 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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1answer
55 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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1answer
115 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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1answer
110 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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1answer
45 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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1answer
95 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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1answer
268 views

Re-purchasing a stock at a loss. Re:IRA's

I recently sold some stocks at losses, but also some at profit in a regular TD Ameritrade acct. Can I buy those same stocks in an IRA within 30 days without affecting the loss in a regular account ...
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4answers
118 views

Claiming More Capital Losses

I saw a Dave R video where a woman said she was advised by an accountant to have brokerage income/gains to "utilize" (the woman's words from her accountant) $316,000 in capital losses. I was under ...
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1answer
195 views

US Tax implications? Bought stock options, paid AMT, company acquired at a loss, options worthless

Scenario (numbers are for illustrative purposes only): 2017: I exercised options when I left my former employer (startup, not public). Exercised 100% of 10,000 ISOs, common stock. At a strike price of ...
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1answer
78 views

Time Range to Offset Capital Losses Against Capital Gains

I am trying to better understand how long after a capital gains loss, you can offset value against a capital tax gain. The Government website states; When you report a loss, the amount is deducted ...
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1answer
52 views

Will offsetting $x in long-term gains with the exact same $x in short-term losses of the same asset class result in no taxes on the gains?

As the title says, will I have any tax consequences (aside from paperwork) if I offset an equivalent value worth of long-term gains with short-term losses? Assuming no other externalities except an ...
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2answers
175 views

Do the proceeds I receive from realizing a capital loss increase my gross income?

Suppose that in 2017 I bought 100 shares of XYZ stock. Would selling all these shares in 2018 for $900 worth of proceeds at a cost basis of $1,000 (realizing a capital loss of $100) increase my 2018 ...
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51 views

Can I take capital loss here? (Wash sale) And how to calculate cost basis?

Lets say I have the following trades of CompanyA stock: Jan 1st - bought 5 for $10 Jan 15th - bought 3 for $12 Jan 25th - bought 3 for $15 Apr 15th - sold 11 for $18 -- Gain May 5th - Bought 5 for ...
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2answers
321 views

Why's it hard to claim losses on Canadian shares as business losses in the future?

Tax Planning for You and Your Family 2019 by KPMG. p 100. If you wish to ensure that your trades on the stock market will always result in capital gains rather than business income, you may file ...
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3answers
146 views

Do I have to claim a capital loss in the tax year that it occurred?

Say I have a stock position that is currently significantly underwater. At this point, I'd like to give up on the stock and sell it. I realize that the resulting capital loss would be deductible on my ...
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1answer
683 views

Forgot to use carried on capital loss - can I use it next year?

the tax accountant that prepared my 2018 US Federal taxes forgot to carry over the allocatable amount ($3000) of a capital loss that I incurred some years ago. In the previous years, I always carried ...
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0answers
54 views

Can a capital loss on a gilt be set against the interest received when tax is calculated?

Say if I buy a 3.75% gilt for £103, with a redemption date 1 year from now, then at the the end of the year I should receive £3.75 interest from coupons, but I lose £3 of capital. The total gain is £0....
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0answers
100 views

(Hypothetical) Write off Loss of Cash due to bankruptcy of financial institution

In both Canada and the United States, how do we write off the loss due to bankruptcy of the financial institution in excess of deposit insurance on the tax return for the tax year when the bankruptcy ...