How to do?

[Wonders]

Hi,

For Tax Year 2021 I had Capital Gains of $273,00.00 due to sale of stocks. I paid my taxes. For Tax Year 2022 I will have a Capital Loss of $300,000.00 due to sale of stocks. 

Every year I do my taxes with Turbo Tax. How do I do it this year (Tax Year 2022) considering the Capital Loss? I understand I can get $3,000.00 per year refund? Will Turbo Tax Premier be able to guide me through filling out my tax return properly?

Edward

[drc845443 · Accepted solution]

Hello there!

If you do not have any self-employment income, then you may want to consider the TurboTax Self-employed.

If you do not have any self-employment income, TurboTax Premier would be sufficient, and it can guide you through the tax preparation.  In addition, you may also want to consider TurboTax Full Service, which is where you upload your documents and a TurboTax expert prepares your tax return for you.

Unfortunately, you can only deduct up to $3,000 if you do not have any capital gains in any given year. The $3,000 is the maximum deduction, not a refund.

In a year when you have capital gains, you can use the capital losses to offset the capital gains, in addition to the $3,000 against ordinary income.

[Insignia]

If I have a capital gain of 300,000 from selling a home I lived 4 1/2 but on my stock I lost 100,000 on short sale capital gains. My new capital gains would be 200,000? And is the sale of my house counted as a short sale also?