Can you claim stock marktet loss durring tax time ?

Question

Say I buy 1000 shares of XYZ's for $20 per share on Nov. 9 2007. And the price drops to $10, so I choose to sell all the shares. So I lost $10,000. Can I deduct all $10,000 during tax time ? Or can I carry over to the next year until all is deducted ? How does it work ? What is the maximum tax deduction for stock loss?

thanks

And say I lost $50,000. Can I deduct it on tax time year after year after year until I recover the full amount that I lost for the $50,000. What is the limitation I can deduction? $100 K ? $200k?

Thanks

Answer 1

First, assuming you are paying U.S. taxes and not filing as a professional trader, you need to understand that gains and losses from investments are capital gains and capital losses.

Capital losses are used to offset capital gains, so unless your capital losses exceed your capital gains you never deduct losses on Schedule A.

If your capital losses exceed your capital gains, the excess losses can be deducted against ordinary income up to a preset limit. (The last time I checked the limit was $3,000 but that may have changed in later years.) Anything beyond the limit is carried forward to later tax years.

There is an excellent, easy to read, tutorial on capital gains taxation at

http://www.fairmark.com/capgain/

if you need more information.

Answer 2

Yup, It can be done. The percentage loss which can be claimed may differ from country to country apart from other rules and regulations. You have to file the claim for the losses in the same year in which it has been incurred.

You should contact a Certified Public Accountant who would know the exact details.

Answer 3

you may checklist all inventory sales. The IRS in basic terms is commonplace with suitable to the proceeds from the sale and could assume a foundation of $0 in case you fail to contain time table D with your tax return. based upon how plenty inventory you bought, that ought to effect in an exceptionally nasty ask your self in a pair of 300 and sixty 5 days. this is not "ought to" or "could." this is could.