Capital Gain Vs Capital Loss?

Question

Capital Gain is taxable but what about Capital Loss? Is there any help under income tax laws for capital loss?

Answer 1

Yes. Its deductible from your gross.

Answer 2

If you have a net capital loss, you can use up to $3000 of it ($1500 if married filing separately) on the current year's return against ordinary income. If your loss is greater than that, the rest may be "carried over" to future years until it's completely used up.

Every year you must reduce your carryover by the limit for that year, whether you can use it or not.

Answer 3

It depends. If each of the positions was held for over one year before the realized gain or loss, each would count as a long term capital gain (loss), and would offset each other. If one or the other was less than one year, the gain or loss would be taxed at the same rate as your ordinary income, and they wouldn't exactly offset. If both were less than one year, they would offset. Note that I am not a CPA or tax attorney. You should review your return carefully to ensure your correct listing of these amounts.

Answer 4

capital loss can be set off against capital gains ¬ againest any ohther income head You can carry forward capitalloss in subsiquent 8 assesment years toget set off againest capitalgains You can refer to www.taxman. com for clarification.