Stock Sold on loss

Forum|Forum|5 years ago
April 7, 2021
2 replies
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I had only purchased one stock in 2020 that to sold on loss which is in very low amount so do I have to show that on my taxes? No income from that stock so have to show on my taxes?

RayW7

Level 12

You don't pay taxes on stock losses, but you do have to report all stock transactions, both losses and gains, on IRS Form 8949

If you receive a 1099-B from your broker just enter the information in TurboTax.

Failure to include transactions, even if they were losses, might raise concerns with the IRS.

-follow these link(s) for additional information-

Guide to Schedule 😧 Capital Gains and Losses - TurboTax ...

Form 8949, Sales and Other Dispositions of Capital Assets

NEel01Author

Level 2

Thanks for your quick reply Sir,

Can you please suggest me that can I do this on free edition of TurboTax? And if not, then what edition is perfect for this situation as I only have 1099 form which shows only that one transaction and loss.

I am a newbie in this so don't know.

Thank you for your help!

NCperson

Level 15

@NEel01 - how much did you lose, if it is a very small amount, it may not be worth it

NCperson

Level 15

you actually get a tax deduction for that loss, so it is in your best interest to post it on your tax return.... you can deduct up to $3000 of losses per year and if you have more than $3000 of losses, the rest will carry over to next year and then next year, etc. until it is all used up.