If I have 6,000 short term capital gain and 5,000 short term capital loss?

Question

Will this offset for a 1,000 short term capital gain tax. Or does it mean I can only apply 3,000 of the loss to the gain. (all from stock sales)

I know to list sep. Just checking about total gain/loss. If the two offset in the end or up to a certain amount

Answer 1

You have a $1,000 net short term capital gain PERIOD.

As far as the guy above me talking about being limited to $3,000. $3,000 is the limit for a NET capital loss write off. If you had $10,000 in losses, and $3,000 in gains. Your net capital loss would be $7,000, and you would be limited to $3,000 in that year. The remainder would be carried forward to future years.

Answer 2

Assuming they were in the same year, you'd show each transaction individually on your schedule D but would then add them together, so you'd have a net $1000 short term capital gain for the year.

The $3000 limit only applies if you have a net capital loss for the year after you add everything up, both short and long term - then you can only take $3000 per year of the loss to offset other income, you'd carry the rest over to the following year.

Answer 3

If I am not mistaken, you can only deduct a maximum of $3,000.00 in losses each year. It doesn't matter if they are long or short term.

The remaining $2,000.00 will be carried over the next year. As a result, for the current year, you have a $6,000 short term capital gain, which must be reported in its entirety and a $3,000 short term loss with a $2,000 short term loss that must be carried over to the next tax year for filing purposes.

Answer 4

The amounts will net to a $1K STCG on your 1040.

The $3K is a different issue altogether. That refers to how much LTCG in excess of capital losses you can take against ordinary income.

Answer 5

You have a net capital gain of $1,000.

Answer 6

on the tax return, you will list each buy/sell separately. Don't try of offset one against the other.