Hello folks. Forgive me if I've missed it, but I've scanned the FAQ and don't seem to be able to find an answer to my questions. What I'm wondering is if I sell a stock at a loss, can I just write that off as a tax deduction on its own or must I also have accompanying stock that has been sold at a gain to offset the loss? I've heard conflicting opinions on the subject, and I'm hoping someone (or several) might be able to offer the true answer. Thanks much in advance!Radio!!!
"if I sell a stock at a loss, can I just write that off as a tax deduction on its own or must I also have accompanying stock that has been sold at a gain to offset the loss?" You can declare up to $3000 in stock losses in excess of capital gains. That is, if you have no gains, you are limited to $3000 in losses in a year. However, you can carry any excess losses over to future years. You can also write off any gains against the loss. To claim your loss, you fill out Schedule D. If this is your first stock transaction, better luck next time! Best wishes, Chris
Here's a link to the excellent article in the FAQ that will answer your question and give you a lot more information you should have: http://www.fool.com/school/taxes/2000/taxes000107.htmTMF ExROPhil Marti
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