Can I deduct a loss in stock sales?
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Can I deduct a loss in stock sales?

I bought stock in 2000 and sold in 2016 at a loss.
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Can I deduct a loss in stock sales?

You enter the sale using the "Stocks, Mutual Funds, Bonds, Other" interview.  The "proceeds" information comes from the 1099-B that the broker provides - though 1099-B's aren't due until mid to late February - and, most likely, the "basis" information needs to come from your own records.

Proceeds - Basis = Gain/(Loss)

The capital loss will first be deducted against any offsetting capital gains.  If there is capital loss left over after this netting process then $1,500/$3,000 of the loss (depending on filing status) will be deducted against "ordinary" income.  If there is still loss left over after using the $1,500/$3,000 amount the remainder will be "carried over" to the next tax year.

Tom Young


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