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I sold stock at a loss, short term. At tax time will I be able to write off, short and long term gains or just short term gains against these losses?
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nyeb writes:

I sold stock at a loss, short term. At tax time will I be able to write off, short and long term gains or just short term gains against these losses?

I reply:

First you'll net your short-term losses against any short-term gains, and any long-term losses against your long-term gains. If this process results in a short-term loss and a long-term gain (or vice versa, for that matter), you'll net the loss against the gain. If you still have a loss when this process is complete, you may apply as much as $3,000 of that loss against ordinary income. If you have even more loss than that, you must carry the excess over to future years. --Bob
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I sold stock at a loss, short term. At tax time will I be able to write off, short and long term gains or just short term gains against these losses?

Net your losses. Use your short term losses to offset your short term gains. Use your long term losses to offset your long term gains. If your total losses exceed 3000, you may deduct the first $3,000 of losses in the current year. Any balance is carried over to future years until it is consumed by gains, carryovers, or your demise.

"Jack"
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I sold stock at a loss, short term. At tax time will I be able to write off,
short and long term gains or just short term gains against these losses?

Sorry, it's not just "able to", you HAVE TO. It is unfortunate that you must lose the advantage of Long Term Gains rates and waste the higher rate Short Term Loss on them instead of higher ordinary income. Ed
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