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I have capital gains of x amount. I have losses of x amount. I want to offset my gains with my losses. Do I (a)apply my losses before my gains are taxed or do I (b) figure the taxes on my gains and then apply the losses to offset the gains

Ex: CG = $60,000; losses = $10,000

(a) $50,000 x 20% = $10,000 thus leaving me with a $10,000 tax burden

or

(b) $60,000 x 20% = $12,000 in taxes to be offset by $10,000 in losses to give me a $2,000 tax burden.

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