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Old 09-03-2009, 04:30 PM
 
1,359 posts, read 1,086,652 times
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Default Tax question regarding selling stocks

Hi All,


I have a question regarding selling stocks...For example if I sell a Stock ABC and make a profit of $10,000, and than I sell a stock DEF with a loss of
-$10,000... Do I owe any federal & state taxes...I asked the question to Co-workers...One said that I still owed taxes for the stock profit transaction and the other said that it was a wash....no capital gains...therefore no taxes...whose right...

Also, does anyone know what the federal tax rate is for short term stock sales less than a year...
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Old 09-03-2009, 07:16 PM
 
Location: The Pacific NW.
702 posts, read 993,785 times
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You're taxed on NET gains, so a $10k gain and a $10k loss = zero tax. The short-term capital gains rate for stocks held less than a year is the same as your income tax rate, whatever that is.
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Old 09-03-2009, 09:16 PM
 
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You can also carry forward losses from prior year and use them against current year gains.
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Old 09-04-2009, 06:42 AM
 
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Thanks...
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Old 09-04-2009, 07:55 AM
 
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Quote:
Originally Posted by Jaggy001 View Post
You can also carry forward losses from prior year and use them against current year gains.
Up to a limit of I think $3,000
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Old 09-04-2009, 08:52 AM
 
Location: The Pacific NW.
702 posts, read 993,785 times
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Quote:
Originally Posted by pghquest View Post
Up to a limit of I think $3,000
Actually, there's no limit when using carried forward losses against gains. Once you've offset all gains (if any), THEN you can use up to $3k of the excess loss against ordinary income.
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Old 09-04-2009, 09:05 AM
 
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Quote:
Originally Posted by LongArm View Post
Actually, there's no limit when using carried forward losses against gains. Once you've offset all gains (if any), THEN you can use up to $3k of the excess loss against ordinary income.
Thanks for the clarification..
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