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Luo8888
Level 2

short term loss vs. long term gain

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

1 Best answer

Accepted Solutions
MinhT1
Employee Tax Expert

short term loss vs. long term gain

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.

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2 Replies
MinhT1
Employee Tax Expert

short term loss vs. long term gain

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Luo8888
Level 2

short term loss vs. long term gain

Thanks for the clarification!

I appreciate the quick responses from both of you.

Cheers,

Roger

 

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