Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124972  
Subject: Re: Selling a stock at a loss for Tax deduction Date: 12/22/2011 3:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
So, if I have not sold any other stocks during the year for a profit, then this would stand on its own as a loss?

It doesn't really matter if there are other sales or not. You net all of your gains and losses together. If you have a net loss, you can only use $3000 of the net loss this year. The rest will carry forward to next year.

I bought it in April of 2011 and the loss will be $4407.

Well, you don't know exactly what the loss will be until you sell. The market is constantly changing. So its probably more correct to say the loss is about $4400.

Nevertheless, if this is your only capital transaction for the year, you'll use $3000 of the loss in 2011 and the rest (about $1400) will carryover to be netted with any gains or losses you realize in 2012.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.