Can you write off a loss from Schedule D- Capital Gains and Losses- if you do not itemize deductions?

Question

I invested in a mutaul fund for my son some years ago and now he needs to sell to pay for some college expenses.He is 21 years old now The fund was set up as a custodial account.The principle investment has been reduced by almost half.Can he claim the loss even though he does not itemize ?He is also my dependent?

Answer 1

Yes.

Investment losses are not an Itemized Deduction and can be claimed whether you itemize or take the standard deduction.

Remember though, net losses can not exceed $3000 per year and any remaining losses can be carried forward.

Answer 2

Your broking provider will save music of each little thing and deliver all of the tax varieties you like in January. determine you learn the version between short term and long term. The IRS would not "take out" something. The organization or economic employer or broking provider take out what you tell them to. (There are some situations of necessary withholding even though it nonetheless isn't the IRS that takes out the money.)

Answer 3

I second what Wayne Z has said.