Q. Can we deduct a $10,000 loss against $15,000 of dividends ?
A. Simple answer: no.
A capital loss can only be deducted DIRECTLY against capital gains, including capital gains distributions (box 2a on a 1099-DIV).
Only $3000 of Capital losses may be deducted against ordinary income, including dividends (including "qualified" dividends). Any excess (over $3000) is carried forward to the next year. Although qualified dividends are taxed at long term capital gains rates, they can not be deducted directly against capital losses.
