Is capital loss in stocks can be used to offset regular income such as salary?

vaddavalli · ‎December 7, 2020

Anonymous_ · ‎December 7, 2020

Yes, to a certain extent.

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 21 of Schedule D (Form 1040 or 1040-SR)

See https://www.irs.gov/taxtopics/tc409

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Anonymous_ · ‎December 7, 2020

Yes, to a certain extent.

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 21 of Schedule D (Form 1040 or 1040-SR)

See https://www.irs.gov/taxtopics/tc409