do you get a tax return on money lost in individual stocks?

Answer 1

if you sold stock at a loss, you can deduct up to ($3,000) capital loss. if youre simply referring to your stock declining in value, or unrealized loss, then no, this is not deductible. you have to have to sell the stock in order to realize the loss.

Answer 2

You will receive a 1099B from your broker indicating the sale. You will also need to have the buying price and the date of the purchase.

Record this information on Schedule D, Capital Gains and Losses. If there is a loss, transfer the loss to Line 13 of Form 1040. If your loss is more than $3,000 you will carryover the excess loss to the next year.

Here is the publication with instructions to Schedule D.

http://www.irs.gov/pub/irs-pdf/i1040.pdf