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

What were my mistakes? Buying individual stocks. Over 80% of all professional fund managers are doing worse than a simple S&P 500. These are people who get 100s of 1000s of dollars per year for ...
Hilmar's user avatar
  • 7,860
63 votes

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

I would like to know in retrospect what I and other Coinbase stock buyers did wrong. What are the lessons learned for my future? What were my mistakes? You bought a meme stock during the manic phase ...
Bob Baerker's user avatar
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48 votes

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

You are just starting to learn about investing, so it helps to go over the fundamentals. Typically when an individual has a small amount of spare cash they will put it into a savings account at a bank....
thelem's user avatar
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42 votes
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How do I realize tax losses on a cryptocurrency I can't sell?

I would preface by saying it's probably best to contact a tax professional. Beyond that this thread is semi relevant, albeit about illiquid penny stocks as opposed to crypto: How do I get rid of ...
Dot_plot21's user avatar
34 votes

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

What are the lessons learned for my future? What were my mistakes? Specific lesson learned about Coinbase? You bought it because it was in the news. Specifically, you bought it because of favorable ...
Harper - Reinstate Monica's user avatar
30 votes
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What's the point of the wash rule?

The point of the wash rule is to defer (not eliminate) the tax benefit of a sale until you close out the position that you opened after realizing the loss. In your example, you closed your re-opened ...
D Stanley's user avatar
  • 135k
20 votes

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

One thing you should take from this experience is how much you need to consider your choices of saving instruments. If you are going to invest in shares of a single company then you should assure ...
Dave's user avatar
  • 823
18 votes

What's the point of the wash rule?

The point of the wash trading rule [and similar variations in different jurisdictions] is to prevent someone from deferring gains and accelerating recognition of losses, for tax purposes. Without a ...
Grade 'Eh' Bacon's user avatar
18 votes
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How to deduct a loss from an investment that went bankrupt?

You may want to consider consulting a tax attorney for this. This is, for the most part, new territory with a lot of gray area in the tax code. You can claim worthless securities as a loss on your ...
Stan H's user avatar
  • 7,241
17 votes

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

Be aware of the sunk cost fallacy. The money you lost is gone and nothing you can do will bring it back. What you do now should be largely independent of that. Let's say you had the money you have ...
NotThatGuy's user avatar
14 votes

Tax treatment of losses from investment trust going bankrupt

You use Form 4684. Unfortunately, it doesn't flow through Schedule D to offset gains, but through Schedule A, itemized deductions. Depending on your current itemized total, some or all of your loss ...
JTP - Apologise to Monica's user avatar
14 votes
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Can I claim a capital loss on property I gifted?

No, you cannot, because you didn't lose any money. You gifted it away. The donee can claim capital loss based on the FMV or gain based on your cost basis (see the rules on the IRS site).
littleadv's user avatar
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10 votes
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I realized I am too stupid to buy individual stocks, should I use "robo-advisor" consulting?

Actually I like to buy stocks, is like a little hobby, but my results are very bad. Especially compared to the market average. So buy the index funds that mirror the market average. Very little ...
mhoran_psprep's user avatar
9 votes

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

You are not the person or entity against whom the crime was committed, so the Casualty Loss (theft) deduction doesn't apply here. You should report this as a Capital Loss, the same way all of the ...
shoover's user avatar
  • 1,098
9 votes
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Does loss in stock market count against standard/itemized deduction?

Capital losses are not itemized deductions, which means that they are not part of the deductions that you need to forgo if you take the standard deduction. Instead, you report all capital gains and ...
Ben Miller's user avatar
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7 votes
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Stock return based on percentage

would you earn $600 or $1600? You would have $1600, and your earnings would be $600. That's the only answer it could be, since if you start with $1000 from your savings, then it's impossible for ...
RonJohn's user avatar
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7 votes

Tax treatment of losses from investment trust going bankrupt

In addition to the form JoeTaxpayer pointed you to, I recommend that you look at IRS publication 547 which includes instructions on how to obtain tax help for deducting losses. If the loss is greater ...
NL - Apologize to Monica's user avatar
7 votes
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Does exchanging funds from an S&P 500 index fund into a Russell 3000 index fund at a loss constitute a "wash sale" if losses are claimed?

You are safe from considering it a wash sale. The two transactions are more than 61 days apart (December 31st 2017 to mid-March 2018); and the two funds are different. An S&P 500 fund is different ...
mhoran_psprep's user avatar
7 votes
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Do I have to pay taxes on my capital gains when they're still less than my carryover capital losses?

Your $5k capital gain will be offset by the carryover loss and you will pay no taxes. IOW, the $5k will reduce your carryover loss to $12k and you will be able to utilize another $3k deduction as ...
Bob Baerker's user avatar
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7 votes

Is it generally advantageous to offset capital gains with losses?

I actually do the logic the other way around. In the account where I do my trading, once I no longer believe an investment can be profitable, I sell it. Similarly, if I have an investment where I ...
quid's user avatar
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7 votes
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Can $3000 of already existing capital losses be used in next year instead of current year?

You cannot defer it. But, if your total taxable income after the deduction ends up being negative - you get a NOL (net operating loss) which you can carry forward to the next year. If you are asking ...
littleadv's user avatar
  • 174k
6 votes
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Stock as gift then sold for loss

It depends on a few factors, but it's pretty easy to nail down. If fair market value (FMV) when gifted was higher than your grandparents' basis, then you use their basis, but can adjust that basis up ...
Hart CO's user avatar
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6 votes
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Are two options ever too similar for taxes?

In my opinon, https://fairmark.com/ is a reputable site for tax advice. Here's an abbreviated version of their take on the wash sale possibilities involving stock and options: If you sell a stock at ...
Bob Baerker's user avatar
  • 76.4k
6 votes

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?

The problem you face is that if other people/companies file forms related to your transactions that make it appear that you should file, then you have to file to be able to prove you owe no income ...
mhoran_psprep's user avatar
6 votes

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

You should sell and take your losses because you don't yet know what you are doing. Imagine that you were twelve years old and the family was not home. You borrowed the car keys, took the other car, ...
Dave Harris's user avatar
  • 4,277
6 votes

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

There's already plenty of answers, but I'll try to help you with the analysis part. How to understand and accept the results. And how to make decisions in the future. Now my loss at 25% It's ok for ...
Džuris's user avatar
  • 661
6 votes
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What should one do with excess capital losses?

Obviously tax should not be the only consideration here. You should consider this as an opportunity to re-balance your investments. But I'll analyze your options here purely from tax perspective, ...
littleadv's user avatar
  • 174k
5 votes
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tax deduction for 30k loan

The loan itself is not tax deductible; unless you took it as part of a mortgage, anyway, it's just a regular loan. Mortgage and Student Loan Interest deductions are special cases explicitly given tax-...
Joe's user avatar
  • 35.8k
5 votes

How to sell unwanted options

Before the expiration date if there is no buyers, there is no market and you cannot sell them legally. When they will expire worthless, you will be able to claim a tax loss. Check this publication ...
Armando's user avatar
  • 1,020
5 votes
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Do the proceeds I receive from realizing a capital loss increase my gross income?

No. Gross income doesn't include proceeds received from realizing a capital loss, regardless of whether the capital loss is a short-term or long-term capital loss. Gross income (as defined by Section ...
nanoman's user avatar
  • 29.7k

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