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Subject:  Re: tax penalty on stocks sold in less than a ye Date:  12/31/2008  11:42 AM
Author:  RBMunkin Number:  103265 of 127753

But even though the short term capital gains tax rate is higher than the long term rate, they allow you to offset short term capital gains against long term capital losses, right? I never quite understood this, not that there is any "understanding" inherent in tax laws! They allow you to offset a higher tax rate item against a lower tax rate item.

So basically, you can "net" all capital gains and losses regardless of whether they are short or long term, right? And then if your net is a loss, you can then offset up to $3K against ordinary income.
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