short term loss vs. long term gain

[Luo8888]

Hello,

I have 2 trading account from two different brokerage:

Account A:  short term loss: -$3000; long term gain +$5000

Account B:  short term gain: +$4000

Question:

Would account A short term loss to offset account A long term gain first, or would account A short term loss to offset account B short term gain first?

Thanks!

Roger

[MinhT1 · Accepted solution]

Capital gains and capital losses (both short term and long term) from both your accounts are added up by type on your schedule D.

Losses on your investments are first used to offset capital gains of the same type. So, short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain.

Please read this TurboTax article for more information.

[Luo8888]

Thanks for the clarification!

I appreciate the quick responses from both of you.

Cheers,

Roger