2007-10-31 03:47:40 · 5 answers · asked by Yanni D 1 in Business & Finance ➔ Taxes ➔ United States
When you sell the stock, you report the profit and loss from the sale on schedule D (Form 1040).
In a year you can deduct a maximum of $3,000 of capital losses. If you have more than $3,000 losses, then you deduct $3,000 in the year and carry-forward remaining in the next year.
2007-10-31 04:06:22 · answer #1 · answered by MukatA 6 · 2⤊ 0⤋
When you sell the stock, you'll report it for the year of the sale - there is nothing to report until then. At that time, if you mean that you paid $4000 for it and you sell it for $1000, you'll report the sale transaction on a schedule D showing a $3000 loss. If you have other income of at least $3000 you can use the loss to offset the other income.
2007-10-31 14:20:40 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
First you sell the stock. Then, you get a tax form from your broker, that shows your net loss. The net loss is, what you paid for it, minus what you sold it for. If you bought it for $1,000, it went up to $4,000, then back down to $1,000, you don't have a loss.
2007-10-31 03:58:00 · answer #3 · answered by Anonymous 7 · 2⤊ 0⤋
Just to add, do not re purchase this stock for at least 30 days or else you won't get the deduction.
2007-10-31 12:04:27 · answer #4 · answered by Steve 6 · 0⤊ 0⤋
You can't claim anything until you sell the stock.
2007-10-31 03:55:03 · answer #5 · answered by Anonymous · 3⤊ 0⤋