Can I claim a loss on my income tax if a sell a stock at a loss but do not have any capital gains to offset it
I have stock that was valued at $3,000 when I purchased it 5 years ago. Now it is worth $0. I sold a condo last year and made a profit. Would it have helped me then? Since I did not sell it, can I write it off as a loss next year?
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about 1 year ago
you can take up to $3,000 a year in losses that will be deducted against any income. Any losses greater than that can be carried forward to future years.
about 1 year ago
Yes, you can claim up to $3,000.00 dollars on Schedule D as a loss in one year. Or, you can deduct more if you have a gain from the sale of another asset. I would get something from a stock broker to show the value is zero in case the IRS wants verification of the loss.
Selling a home you get $250,000.00 gain tax free if you are single and $500,000.00 if you are married. So if your gain on the home was not over these limits you do not have to pay tax on the gain.
You can find the answers to your questions at http://www.irs.gov. Start with publication 17 looking for the answers. Or, you can call (800) 829-1040 and ask the IRS directly. Long wait on hold this time of year.
about 1 year ago
yes upto a limit of $3000 in a tax year. Any losses above that is carried forward to subsequent years.
about 1 year ago
Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became worthless during the tax year are treated as though they were sold on the last day of the tax year. This affects whether your capital loss is long-term or short-term.
Report worthless securities on Schedule D (Form 1040), line 1 or line 8, whichever applies. In columns (c) and (d), enter “Worthless.” Enter the amount of your loss in parentheses in column (f).
If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. You must use Form 1040X, Amended U.S. Individual Income Tax Return, to amend your return for the year the security became worthless. You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later.
(Like one of the others said, though, your stock must be “worthless.” That means, worth zero ($0) dollars per share. If it’s just worth “almost zero” then, it’s not considered worthless.)