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Financial Planning / Tax Strategies


Subject:  Re: Capital Losses Date:  12/9/2001  4:42 PM
Author:  pilgrim101 Number:  55828 of 130427

Greetings -

In reading this thread, searching the FAQ's etc. it appears there's a misnomer about having to have short or long term capital gains in order to take advantage of a net short/long term loss.

In my case (and I suspect others') I've been holding EVERYTHING all year long. I will sell no stocks this year for a gain. However, I am in a position to sell a particular stock prior to Dec 31st for a $3,000 loss. Am I to understand that with nothing on the GAIN line, and everything on the LOSS line -- that this $3,000 loss can be used to offset my other income (e.g. wages, dividends, etc.) I don't have anything like $3K in dividends, so would ordinary wages apply? I understand this is dependent on my bracket, it's deductible, not a credit, etc.

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