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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 121168  
Subject: Re: Selling a stock at a loss for Tax deduction Date: 12/22/2011 3:25 PM
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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.

--Peter
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