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

Recently, there have been a lot of talk about $15 trillion worth of negative-yielding bonds being traded worldwide--and how this number is increasing. Some internet users suggest: why not hold cash (...
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393 views

Does loss in stock market count against standard/itemized deduction?

I read some articles on the internet but I am still confused. None of the articles seem to give me an answer that I am able to understand. As far as I understand, I can either apply the Standard ...
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Business losses for expenses incurred by a foreign contractor

I am a resident of California (Green Card holder), and started a new business in 2018 to evaluate an idea I had. It was not registered in state of CA as I was not sure how far the idea can go. Anyway, ...
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Wash Sale on Options trading

Does the Wash Sale rule apply to options trading? If I buy and sell the stocks in a loss, can I still trade the call options for the stock within 31 days of selling?
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Wash Sale on stocks sold for average gain [duplicate]

Day 1: I purchased 100 stocks of ABC for 100$. The stock went down and I purchased additional 100 shares for say 80$. Now, my average is 200 shares for 90$. Day 2: The stock went up and I sold all ...
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185 views

Reporting stock that can't be sold

I'm in the US. I understand that I can report stocks I sold for a loss and claim some deductions. What if the stock can't be sold, no one buys it or the company is under? Is there any way to get ...
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Capital loss treatment for non resident aliens

Can non resident aliens (someone who does not pass the substantial presence test) claim the 3000$ deduction against income if there is no sufficient capital loss? Also can any excess capital loss be ...
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776 views

Tax Loss Harvesting and RSUs

I routinely sell my RSUs as soon as they vest, but this previous vesting period -- I did not. Sadly, the stock declined ~25 percent since that time. Some key notes. This would be a short-term sale ...
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Making 475(f) election just for this year?

I suffered losses in the stock market far exceeding the allowable loss deduction of $3000. I was working on an H1-B visa when I faced this loss. I was wondering whether I could elect to use 475(f) ...
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281 views

How to calculate profit for ESPP stocks including cost basis, tax, fees etc

I opted for ESPP stock options in my previous company. The plan offered 10% discount on market value. When I opted for the plan the company created a etrade.com account on my behalf and I could see ...
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64 views

When I am continually trading an asset, when does each wash sale loss get applied?

Let's say I buy 20 shares of stock at $100 each, and later sell half of those shares at $90. Less than a month later, I buy back 5 shares of the same stock at $95. The stock then rises to $101 and I ...
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US tax return - how to report a private stock that paid out dividends and liquidated at $0 value

I work in the United States. My Netherlands based employer offered me to buy into an employee equity program organized as a Dutch BV. My basis is approximately $4000 from two purchases in 2011 and ...
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Can I deduct partnership loss from my income?

I lost tens of thousands as passive loss when I withdrew from a partnership. However I'm not sure whether the capital loss is deductible. Since I have no passive income I think I could deduct $3,000 ...
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224 views

Capital losses from stocks - carryover, and offsetting gains / income for NON-RESIDENT ALIENS

I'm a PhD student filing a tax return for 2018 on 1040NR (non-resident alien) - married filing separately. In 2018 - I had a considerable capital loss (there were no gains). when filling my tax return ...
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1answer
78 views

Are two options ever too similar for taxes?

If I buy an option, wait 3 months, sell it, and then buy it back the next day, "wash sale" rules will apply. But, what happens when these three actions use slightly different options (e.g., strike ...
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233 views

How do I account for a forced buyback (repurchase) of shares if I buy them back within 30 days?

A company I held shares in forced a buyback of a portion of my shares in them. Within 30 days, I then bought back that same number of shares to maintain my holding and basis. However, taking the two ...
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647 views

Meaning of capital gain distribution

How is capital gain distribution calculated? I wonder what differences and relations are between capital gain distribution and capital gain/loss? Line 13 of IRS Form 1040 asks for capital gain and ...
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190 views

Is it mandatory to report Capital Loss on line 21 of Schedule D?

Is it mandatory to specify a capital loss value on line 21 of Schedule D? We are married filling joint return; we have capital loss over $3000 but our income is very low and we don't have to pay ...
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155 views

What are tax implications of short vs long term capital losses?

I have read in multiple places that you can use investment losses of up to $3,000/year against your taxes. Is this as a deduction or credit? Does it count as an addition to itemized deductions or is ...
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How/when to take loss in private company that re-orgs post-Chapter 11 and converts to new/fewer shares?

My wife's company is private. We bought 60 shares x $1k/share 5+ years ago. This past year they (OldCo) went Chapter 11 bankrupt re-emerged from bankruptcy as a new LLC (NewLlc) "There were assets ...
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Are non-resident aliens (1040N0) allowed to offset stock gains with stock losses? And are they allowed to carryover losses? [duplicate]

I am a non-resident filing tax returns using form 1040NR. I'm really struggling to find an answer to the following questions, maybe someone knows and can help - For 2018 - Are non-resident aliens ...
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159 views

Can I recover from wash sale after closing the entire positions?

I have a question about wash sale. When I sold part of my stock A, I triggered wash sale then I got an adjusted cost base for the remaining stock A, say, $1000. What I found on the internet is that, ...
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How to report HSA capital loss on California tax returns, Schedule CA 540 form?

How do we report Capital losses on HSA for California State taxes form schedule 540? Do we need to attach Schedule D (of CA)?
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Is there a general requirement to track and report Capital loss in Canada?

A website of a certain bank states in its FAQ for buying/selling precious metals (https://preciousmetals.td.com/shop/en/tdmetals/metal-support): "Q: Are there tax implications if I sell my precious ...
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Can I claim a capital loss on property sale

If I own a vacant property with 3 people that we paid $120,000 for it can I sell my share to the other owners for $100 and claim a capital loss? I just don’t want to pay taxes and HOA fees anymore. We ...
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Can a US non-resident alien do tax-loss harvesting on capital gains and income? (183-day rule)

Context: I am a non-resident alien in the USA as a J1 scholar. After being present for 183 days in the USA, I must pay capital gains tax in the USA. My questions: i) can I reduce my ordinary USA ...
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389 views

Wash sale repetition through chaining

Wash sales seem to have very weird behavior, here's an example. It uses all the same stock, and there are no other holdings besides those mentioned. Day 1, buy 100 shares for $200 each, so $20,000 ...
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278 views

What is the best way of minimizing a 10K capital loss?

First, thanks for the help! I recently sold a stock at a loss of $10,000 (I guess a capital gains loss). My question is how should I minimize my losses? If I have another stock for which I have a $...
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92 views

Report capital loss for a year when I did not have income (international student)

I was an international student in 2014 and had no income. So I filed form 8843, which is not a tax return. That year I traded some stocks and incurred a net loss. The standard way to report a past ...
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110 views

Does exchanging funds from a S&P500 index fund into a Russel 3000 index fund at a loss constitute a “wash sale” if losses are claimed?

I converted a 'lot' of my Russel3000 index into an S&P500 index (first time investing in the SPY index) for a capital gain at the end of 2017 (for purposes of tax gain harvesting). A few days ...
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148 views

How should I calculate my shares?

Here's context for my question : note that this is a hypothetical I live in Belgium, Europe (if that is any relevant). I own 50% of the company I work in (as a manager). I've been working here 3 ...
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2k views

Can I declare a capital loss on a vehicle sale? [duplicate]

If I sell a car or boat at a profit, I assume I have to pay a capital gains tax. Does it work in reverse as well? Can I declare a capital loss if lose money on the sale of a car or boat?
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107 views

Are capital gains due on investments if none of the money can even be accessed?

I've been learning about cryptocurrencies, mostly from a technical stand-point to develop decentralized applications; however, to get started I purchased a few coins. When the prices rose so quickly, ...
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155 views

Stock return based on percentage

If you were to buy $1000 dollars worth of shares, and the worth went up 60% and you sold, would you earn $600 or $1600? When you sell, do you keep your original capital, ($1000)?
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Can I take a tax deduction for capital equipment, even if my business does not make a profit? [closed]

So I just purchased a piece of property and I have designs on trying my hand at farming. I'm well aware of how difficult that is in and of itself. In the short term, I'm going to purchase some ...
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Early Exercised NSO Shares when company is acquired and the tender offer is lower than the strike price

I early exercised my company shares a few years ao at about $6/share and filed a 43(b) tax form. I'm no longer at the company, but all my shares are vested. This company was recently purchased by a ...
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956 views

Are assets lost in a bankruptcy valued at the time of loss, or according to current value?

For the purposes of claiming a casualty loss in tax filings, can stocks be valued at their current par or is their value only what it was at the time of the loss? My situation is that I have stock ...
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347 views

Book capital losses in gnucash

I have an asset in gnucash, and its value changes over time. I followed these instructions and know how to record the gains, but it's unclear to me how I record the losses. The help page describes ...
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1answer
97 views

Loss on US leveraged ETF; Don't live in US anymore

I made an investing mistake many (eight?) years ago. Specifically, I invested a very large sum of money in a certain triple leveraged ETF (the asset has not yet been sold, but the value has decreased ...
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142 views

Can another tax loss be used to offset capital gains taxes? How does it work?

Firstly, I tried to find the answer to this by reading other questions, but I am still not sure and hence this question. I read that in the United States, I can deduct up to $3,000 in tax losses. So ...
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1answer
295 views

How does harvesting capital losses affect my Modified Adjusted Gross Income?

I invested in a capital asset which has greatly appreciated in value. I have held it over one year and am looking to sell a substantial amount. The tricky part is I do not want to sell enough to put ...
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55 views

US Taxes - Handling Capital Losses from previous years with current capital gains

So here is my scenario, I have $10,000 short term and $12,000 long term capital losses carried from a few years ago. Right now I have $30,000 in short term gains that I have not sold yet. I am ...
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17k views

How do I get rid of worthless penny stocks if there is no volume (so market/limit orders don't work) and my broker won't buy them from me?

Short summary I bought some shares in a penny stock a few years ago, but now they don't trade and are worth $0.0001 per share. I want to get rid of them, but a) market orders don't work because the ...
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1answer
133 views

Chapter 7 Bankruptcy IRS Debit 7 Capital Loss

I have a capital gains loss of $250K and an IRS debt of $200K, this happened through series of mistakes. Explained in detail here. My question is I was told that filing for Chapter 7 bankruptcy will ...
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111 views

Stock as gift then sold for loss

I received from my grandparent's stocks (as a gift) which I have sold this year (2016). Is the basis that I use for the loss at the purchase or at the day of receiving the gift?
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Offsetting losses on share sales with annual tax returns in Australia

I currently hold stocks on a company that has lost 50% of its share value from the time I purchased, can I sell this and offset the loss while claiming tax for this financial year. (The shares were ...
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271 views

If I invest in a company that goes bankrupt, is that a gain or a loss?

This is a real situation, but I will use fake numbers. Let's say I invest $10,000 in an investment trust and my shares eventually appreciate to the point where they are worth $60,000. This is not an ...
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822 views

Tax treatment of losses from investment trust going bankrupt

I had some funds held in trust by a financial company. Due to malfeasance customer funds went missing and the company went bankrupt. The bankruptcy is going through its course and it looks like the ...
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1answer
110 views

Filling for a disaster loss on taxes

In June of last year, a tree fell on my mobile home completely destroying it. We were about 2,000 from being paid off for it. It damaged all of our master bedroom stuff clothes furniture and what not. ...