Say I sell stocks for a profit of $5000. Then I sell other stocks at a total $3000 loss. Am I taxed on $2000 or is my $3000 deducted from my total year's income?
2007-09-13 19:25:24 · 4 answers · asked by jamesv000 2 in Business & Finance ➔ Taxes ➔ United States
Stock losses offset stock gains first. If any loss remains after that, up to $3,000 can be used to offset other income. Any excess over $3,000 must be carried forward to future tax years.
In your example you have a net gain of $2,000.
2007-09-13 21:12:04 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
5000 gain - 3000 loss == 2000 taxable income
2007-09-13 19:30:25 · answer #2 · answered by TedEx 7 · 1⤊ 0⤋
Trading in another persons name is fraud and tax evasion and prosecutable as such. You have been told - it is trading and all profit is taxable as such. You must register for Self Assessment, keep full records and submit tax returns. No ifs no buts - do it or get prosecuted.
2016-05-19 01:46:16 · answer #3 · answered by ? 3 · 0⤊ 0⤋
You are taxed on your net capital gain, which would be $2000.
2007-09-14 05:10:13 · answer #4 · answered by Judy 7 · 0⤊ 0⤋