An income tax question regarding short-term capital gains/loss!?

Question

Let's say I sold stocks for $2000 short-term gains and $1000 short-term loss in this year. But I also have $5000 short-term loss carried over from previous years. Then how much previous short-term loss can be offset this year?
Is it $3000 or $4000 (because of $1000 net short-term gains this year)?

Answer 1

The current year short term activity will net to a $1K short-term gain which will be offset by the $5K loss carryforward. Additionally, $3,000 of the loss carryforward will be used to offset ordinary income. As such, you will use $4K of the loss carrryforward and carry the remaining $1K over into the next year.

Answer 2

You'd first net out your short term gains and losses for the year, giving you a $1000 stcg for the year, then net that with your $5000 carryover giving you a total of $4000 stcl. You can use $3000 of it to offset other income this year, and carry over the other $1000 to the next year.

Answer 3

hey, you will taxable at 15% (revised tax cost for STCG) for income in some distance extra advantageous than INR a hundred and fifty,000. it rather is predicated on the cost variety proposals and has now no longer yet been authorized. as with out postpone as authorized you ought to communicate over with the income-tax Act. section 40 5 to section fifty 4 covers the taxation of Capital helpful residences

Answer 4

You can carry over all loss, from year to year, but you can only deduct $3500 on your federal form. The gain will be taxed differently depending on the state you live in. (short/long gain) one does not negate the other.