The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: tax question||Date: 8/14/2001 12:56 PM|
|Author: ashish82||Number: 53330 of 122851|
It doesn't work quite like that, but close.
We will assume you have no other stock transactions.
In April 2002 you have to file taxes. You lost $10 a share on stock A.
You can take up to $3000 in loss against your ordinary income. So
you take the loss on A, and pay less taxes. You still own B. No taxes
due. If you had more than $3000 in that $10 a share loss, the next
year you can take another $3000 against ordinary income
Thanks for the reply!.
One more qs. Does ordinary income include salary paid by employer. Then since this comes with tax deducted at source, will I need to apply for a rebate while filing taxes ? Or tell my employer about the loss so he does the necessary tax adjustments ? Or carry it over to the next FY ?
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