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Returning Member
posted Apr 7, 2021 9:38:48 AM

Stock Sold on loss

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?

0 7 431
7 Replies
Expert Alumni
Apr 7, 2021 9:53:37 AM

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 D: Capital Gains and Losses - TurboTax ...

Form 8949, Sales and Other Dispositions of Capital Assets

Level 15
Apr 7, 2021 9:56:11 AM

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.

 

 

Returning Member
Apr 7, 2021 10:02:59 AM

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!

Level 15
Apr 7, 2021 10:23:55 AM

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

Returning Member
Apr 7, 2021 10:33:49 AM

@NCperson It is loss of $6.26 only...

Level 15
Apr 7, 2021 10:36:55 AM

forget it; don't bother with it.  if you are in a 12% tax bracket, it'll save you a big  75 cents! 

Returning Member
Apr 7, 2021 10:47:55 AM

@NCperson So if I don't include that on my tax that will be good right?

And this won't bother in my tax or get any obstacles?