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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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Can $3000 of already existing capital losses be used in next year instead of current year?

Let's say for someone who has modest ordinary income this year, but next year expects significantly more income - is it possible to defer usage of capital loss to the next year? Or, is this person ...
user4910112's user avatar
1 vote
0 answers
28 views

Stocks Capital gains and losses [duplicate]

My question is about capital gains and offsetting them with losses. All my gains and losses are short term. I do not invest for the long term I understand how this works for 1 calendar year. For ...
OptionTrader's user avatar
6 votes
1 answer
337 views

Can I claim a tax loss for Crypto blockchain shutdown?

Short version is that I bought crypto by way of trading BTC/ETH into the coin of discussion and the blockchain of that coin was shutdown. I can't access the balance in my wallet (and never will). Can ...
Jeremy's user avatar
  • 181
2 votes
1 answer
252 views

Do I have to file a return to be able to carry over a past capital loss?

If I have no income for a year but incurred capital losses in a past year, do I have to file a return for each year following the capital loss (even if I have no income) in order to retain the capital ...
sterid's user avatar
  • 181
2 votes
1 answer
361 views

Recouping AMT paid from exercising ISO Stock Options when sold

Three years ago (2020), I exercised a sizable amount of ISO Stock Options, which resulted in AMT in that year. Let's say the strike price was $50 and the FMV was $100. Since then, the company went ...
davyli's user avatar
  • 33
0 votes
1 answer
120 views

What happens to long-term capital losses that are transferred due to Wash Sale rules?

From Fidelity: According to the tax code, short- and long-term losses must be used first to offset gains of the same type. But if your losses of one type exceed your gains of the same type, then you ...
morsecoder's user avatar
1 vote
0 answers
92 views

Can you sell shares before ex-dividend and buy back after, to replace 'dividend income' by 'capital gains'?

Note: this is the opposite direction than most sell/buy questions over dividend day. Here is the situation: I have large losses from unrelated trading activity, and can only deduct 3000 per year from ...
Aganju's user avatar
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2 votes
2 answers
292 views

Capital loss carryover in low-income years with capital gains

Let's say I bought 100k worth of a stock a long time ago. Over the years, I've received (and paid income tax on) 50k in dividends. The stock tanks, and my shares are now worth only $50k. I decide ...
JoeMjr2's user avatar
  • 143
0 votes
1 answer
123 views

Are everyday foreign currency exchange fees deductible with the CRA as a capital loss? [duplicate]

Let's say today's official market exchange rate from USD to CAD is 1.30. However, my bank or Western Union is only willing to offer me a rate of 1.20. Therefore, I end up converting $100K USD to just $...
AlanSTACK's user avatar
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1 vote
1 answer
104 views

How to compute cost basis over multiple purchases, for sale of a fraction of the assets?

(The example below is, of course, unrealistically simple, just for the sake of illustration.) Suppose that I made the following purchases and sales of shares of some stock X: | 01/15/2021 | bought | ...
kjo's user avatar
  • 197
10 votes
1 answer
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How to deduct a loss from an investment that went bankrupt?

We had money in a BlockFi account, which went bankrupt at the end of 2022. How can we deduct that loss on our 2022 tax return?
jamaicanworm's user avatar
1 vote
2 answers
200 views

Do RSU / ESPP Sales Go On Form 8949 As Capital Gains And Losses?

I have a series of RSU + ESPP sales within the past calendar year. All RSU and ESPP that have vested and been awarded have been reported as ordinary income via a W2. My company uses ETrade for ...
Lloyd Banks's user avatar
4 votes
1 answer
310 views

How to report losses on Treasury Bill sales?

I have an account at Fidelity. Last year I sold some Treasury Bills before they matured. Some of the sales were gains and others were losses. When I got my Fidelity tax package, it showed the gains as ...
sam's user avatar
  • 141
2 votes
1 answer
380 views

Wash Sale on Monthly RSU Vests

I haven't really sold any of my RSU's that I received from my company in the 5 years I've been there. To simplify the situation: I have 100 units at $50 from 2019. I have 100 units at $150 from 2022. ...
gran_profaci's user avatar
2 votes
1 answer
111 views

Tax loss - wash sale rule and mutual funds

I was reading up on tax loss harvesting because I recently sold some stock at a loss. I've know about the wash sale rule, but in my reading came across this information (emphesis mine) This means ...
kicken's user avatar
  • 145
2 votes
1 answer
305 views

Is writeoff gone forever if I trigger a wash sale by repurchasing in an HSA?

I sold 20 contracts of XYZ call option spreads at a total loss of $25,000 in a taxable account. The next day I bought 10 shares of XYZ in my HSA (oops - I hadn't realized that this counts as a wash ...
personal_cloud's user avatar
2 votes
2 answers
136 views

How do I get relief from double taxation on New Zealand interest under treaty when I have a net foreign passive loss?

As a preliminary, I am a dual citizen of New Zealand and United States, resident in the United States, but I have New Zealand source passive income. Under the New Zealand tax system, interest is ...
Tim Lovell-Smith's user avatar
1 vote
1 answer
123 views

How much net passive source income goes on Form 1116 when capital losses are way over the $3,000 limitation?

For U.S. tax year 2021, I have a large passive-category foreign source capital loss (mostly long-term), a medium-size domestic capital loss (mostly long-term), and a small passive category foreign ...
Tim Lovell-Smith's user avatar
0 votes
1 answer
480 views

Capital Loss Carryover from Resident status to Non-Resident Status?

In my last year as a US resident I had a short-term capital loss carryover of about $10,000. In the subsequent year I became a non-resident alien. Am I right that this vaporized (make useless) my ...
user2297550's user avatar
1 vote
1 answer
137 views

Is The Wash Sale Definition Vague, Or Am I Reading It Wrong?

From Pub 550, page 56 (or so), "Wash Sales" is defined as: "A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: ... ...
Shang Zhang's user avatar
0 votes
1 answer
231 views

my Europcar shares are gone !! France

France Boursorama I checked my bank account today and I noticed that all my Europcar shares are gone. I heard that Europcar will be purchased by VOLKSWAGEN GROUP. I received some letters from my bank ...
Lkaf Temravet's user avatar
19 votes
2 answers
5k views

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 ...
CodeOwl's user avatar
  • 313
4 votes
1 answer
2k views

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 ...
ma11hew28's user avatar
  • 507
0 votes
1 answer
181 views

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 ...
Gerold Astor's user avatar
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. ...
jkelle's user avatar
  • 33
0 votes
0 answers
634 views

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 ...
Quaffett's user avatar
0 votes
1 answer
250 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 ...
Sybil's user avatar
  • 692
4 votes
4 answers
614 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 ...
user115619's user avatar
1 vote
1 answer
194 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 ...
user avatar
37 votes
2 answers
9k 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 ...
DNS_Jeezus's user avatar
0 votes
2 answers
108 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 ...
user1422331's user avatar
2 votes
2 answers
98 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 ...
user1422331's user avatar
1 vote
3 answers
321 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 ...
Gramatik's user avatar
  • 427
2 votes
1 answer
216 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 ...
RaGe's user avatar
  • 123
0 votes
3 answers
268 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 ...
Westley's user avatar
  • 111
0 votes
1 answer
108 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 ...
Definitely Not Juanita's user avatar
1 vote
1 answer
54 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 ...
WU-TANG's user avatar
  • 179
1 vote
1 answer
137 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 ...
Matt's user avatar
  • 11
0 votes
2 answers
56 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 ...
xst's user avatar
  • 103
1 vote
1 answer
44 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 ...
Franck Dernoncourt's user avatar
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 ...
Sybil's user avatar
  • 692
1 vote
0 answers
184 views

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 ...
Siddharth Kumar's user avatar
3 votes
0 answers
52 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 ...
user1883212's user avatar
0 votes
0 answers
70 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 ...
Lajos Nagy's user avatar
3 votes
3 answers
1k 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 ...
WU-TANG's user avatar
  • 179
0 votes
1 answer
49 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 ...
Alexei's user avatar
  • 217
0 votes
1 answer
74 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 ...
Manto's user avatar
  • 141
0 votes
4 answers
362 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 ...
Rexcirus's user avatar
  • 103
2 votes
1 answer
106 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 ...
Dustin K's user avatar
1 vote
3 answers
133 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 ...
Jason's user avatar
  • 11