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Author: twister7556 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Short term loss Short term gain Date: 8/2/2009 11:39 AM
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I have a short term loss of 2300.00 and a short term gain of 700.00 will I still have to pay taxs on the short term gain?
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 106641 of 121061
Subject: Re: Short term loss Short term gain Date: 8/2/2009 11:56 AM
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I have a short term loss of 2300.00 and a short term gain of 700.00 will I still have to pay taxs on the short term gain?

Well, no and yes. You net all capital gain/loss transactions for the year on Schedule D, so if these are the only transactions you'll have a net loss of $1,600 flow to line 13 of your 1040. So, no tax due on the $700 gain.

But consider what your return would look like without the $700 gain. You'd have a $2,300 loss on line 13. So, yes, you pay tax on it in that your total tax is $700 * [your marginal rate] higher than it would be without the gain.

Phil
Rule Your Retirement Home Fool

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Author: twister7556 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 106646 of 121061
Subject: Re: Short term loss Short term gain Date: 8/2/2009 8:59 PM
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Thanks, TMFPMarti.

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