Re: I have long-term capital gain $2K and a loss o...
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New Member

I have long-term capital gain $2K and a loss of $6K, and dividend income of $4K (1K qualified, 3K qualified), would the loss of $4K offset the dividend income?

 
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Level 5
Level 5

I have long-term capital gain $2K and a loss of $6K, and dividend income of $4K (1K qualified, 3K qualified), would the loss of $4K offset the dividend income?

3K of the 4K excess loss will offset 3K of ordinary income. Although dividends and long-term capital gains are taxed at the same rates, this does not mean capital losses can be used to offset dividends. However, if you have a net capital loss after offsetting all capital gains, up to $3,000 per year of capital loss may offset regular taxable income, which may include dividends. The balance will be carried over to the 2020 tax year.

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