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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44
votes
18answers
15k views

I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment?

I carelessly invested on stock on a spike (I have been persuaded by a family member) and now my investment value is really low, as you can see below. Is there anyway to salvage my investment for ...
20
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1answer
959 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 ...
17
votes
2answers
4k views

If I donate depreciated stock to charity, can I deduct both the market value and the capital loss?

I have stock that's depreciated in value since I bought it. Just to make up some numbers, I paid $8000 for it, and it's worth $1000 now. If I donate the stock to charity, can I take the charitable ...
13
votes
2answers
823 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 ...
11
votes
3answers
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 ...
8
votes
1answer
282 views

Can I apply prior years' capital losses against my employee stock option exercise?

I'm Canadian, and I executed a "same-day-buy-and-sell" on options granted to me by my employer. My T4 slip has the appropriate taxable benefit called out, but my question is, can I apply my previous ...
4
votes
1answer
651 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 ...
4
votes
2answers
39 views

How are Share Awards and Sales Treated?

I'm looking for a general answer on how this situation is treated for tax purposes, not how to report this situation when doing my taxes (although that would be interesting as well). The numbers ...
4
votes
3answers
328 views

Are wash sale rules different for stocks and ETFs / Mutual Funds?

In this answer to this question, JoeTaxpayer writes: To take the loss this year, he'd have to sell soon, and can't buy it back for 30 days. If, for whatever reason, the stock comes back a bit, he's ...
4
votes
1answer
394 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 ...
4
votes
1answer
1k views

Do I have to sell worthless stock to claim a loss and clean up?

On February, 3 2000 I purchased shares in iVoice.com (IVOC). These shares sat in a "hobby" account which I rarely looked at until recently. I'm looking for guidance on how best to deal with the ...
4
votes
1answer
88 views

Does it make any sense for UK private investors to hold gilts directly and outside of a tax wrapper?

According to my understanding of gilts (which is in accordance with the answers here), private investors in UK gilts paying a premium on the redemption price (for example 2% T20s currently report a ...
4
votes
1answer
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 ...
4
votes
3answers
906 views

Why does my brokerage show “adjusted due to previous wash sale disallowed loss” when I sold my entire position?

Over a month ago, I wanted to do some tax-loss harvesting. I wanted to sell a fund that had dropped in value and replace it with a more generic fund. Right before I sold, the fund paid out dividends ...
3
votes
1answer
104 views

Is capturing a loss a unique opportunity?

Upon the advice of a financial planner at a large financial management firm, a friend bought an individual stock, Apache, as part of their portfolio. That stock has since lost over 50% of its value. ...
3
votes
2answers
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 ...
3
votes
2answers
3k views

Can capital loss in traditional IRA and Roth IRA be used to offset taxable income?

For traditional IRA and Roth IRA, can capital loss be used to offset taxable income for tax purpose? If not, when withdrawing from traditional IRA and Roth IRA, can the capital loss now be used to ...
3
votes
2answers
195 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 ...
3
votes
1answer
1k views

Can I use losses from sale of stock to offset capital gains from sale of property

If I make a capital gain from the sale of a house but make capital losses from the sale of stocks in my brokerage account (not tax sheltered), then can I use the losses against the gains to reduce my ...
3
votes
1answer
90 views

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 ...
3
votes
1answer
85 views

Accumulated Capital Losses

I have accumulated losses of above $200,000 in stocks from the last 10 years. I have been writing off $3000 every year and say the carryover is $200,000. Now i am seeing some profits in my account ...
3
votes
1answer
285 views

Do you use the Cost Basis or the Amount Invested to compute a gain/loss for tax purposes?

A friend's Edward Jones financial advisor is using the Amount Invested and not the Cost Basis to compute the tax loss of selling a mutual fund. I don't know anything about this stuff, but I'm pretty ...
3
votes
1answer
130 views

How to get capital gain tax of 2014 refunded based on the capital loss of 2015?

In 2014, I had capital gain on sale of rental property and tax was paid accordingly. In 2015, I am anticipating capital loss on stocks. Is there a way to get capital gain tax of 2014 refunded based ...
2
votes
1answer
529 views

Tax consequences of short term capital losses

How do short term capital losses figure into taxable income? If someone has 50k of taxable income before considering capital gains (and losses) and a total of $2k in short-term capital losses, what ...
2
votes
1answer
112 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?
2
votes
1answer
261 views

tax deduction for 30k loan

I recently sold my condo. I sold it for less than I owed but took out a 30k loan to pay off the difference (traditional sale, NOT a short sale). Are there any tax breaks or deductions I can take ...
2
votes
1answer
29k views

If I take a loss when I sell my car, can I claim a capital loss deduction on my income tax return?

If I sell my car off at a loss, can I write that loss off against my income to save on tax? Does it matter if the car was used just for personal leisure use, or if I used the car to generate business ...
2
votes
2answers
1k views

Selling stocks at loss (short term) .. should I sell my long term gain stocks in 2014 or 2015?

I started investing in the stock market in Dec of 2013 (last year). I bought 5 stocks - 3 of which are in the red (and which I want to sell) and 2 of them are in profit. My understanding is that in ...
2
votes
1answer
211 views

Can you take a capital loss upon sale after probate action assigns a different value?

I'm exploring an option for unwinding a real-estate investment with my step-father. Please assume that we're both amicable towards any viable solution. My step-father is currently the sole owner of ...
2
votes
1answer
134 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 ...
2
votes
1answer
137 views

Is there any guarantee that index ETF will follow reference index?

As I understand: index ETF attempts to track value of some specific index. It may be done by either really buying index (physical ETF) or by creating some arcane financial instrument that is supposed ...
2
votes
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 ...
2
votes
1answer
100 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 ...
2
votes
1answer
331 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 ...
2
votes
2answers
352 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 ...
2
votes
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. ...
2
votes
0answers
85 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 ...
2
votes
0answers
62 views

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 ...
2
votes
0answers
107 views

LLC capital equipment against day job income

My wife and I have started an LLC. the LLC is run our of our house, it is a machine shop. We file our taxes joint-married. She is 51% owner I am 49% owner. I work a day job (for now). We have ...
2
votes
0answers
5k views

How to report short term capital loss occurred between 16-Mar and 31-Mar in ITR2?

I have short term capital gains from sale of equity shares for India financial year 2013-14 as below (Figures are hypothetical, but the concept is exactly how I am facing it) Gain of Rs.30000 in ...
1
vote
1answer
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)?
1
vote
1answer
113 views

How to sell unwanted options

I bought some call options earlier this year that have dropped to zero value. I've tried several times to sell them at market, but I have seen zero buyers. I would like to sell them or have them ...
1
vote
2answers
111 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 ...
1
vote
1answer
272 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 ...
1
vote
1answer
318 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 ...
1
vote
2answers
72 views

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?
1
vote
1answer
282 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 $...
1
vote
1answer
116 views

US taxes - which is better for capital gains, short term loss carryover or long term loss carryover?

Is one carryover more valuable than the other or are they equally valuable?
1
vote
1answer
367 views

Can compensation income from an employee stock purchase plan be negative?

If I took a loss on my sale of stock from an ESPP (employee stock purchase plan), and the stock had a qualifying disposition, what is my compensation income? I found the following definition: In ...
1
vote
2answers
38 views

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) ...