Comments on: Some Straight Talk On Capital Losses

By: Susan Brower

Susan Brower — Sat, 11 Apr 2009 17:21:17 +0000

Hi – Thanks for the simple explanation of Capital Gains and Losses. I have a question regarding this: I was employed by a large company for over 20 years. During that 20 years, I participated in their stock purchase plan and I held onto the stock after I left the company. 8 years after leaving the company, the company was sold to another company and part of the purchase agreement was that the purchasing company would “buy” all of the common stock held by people at a fixed price. When I calculated the total purchase price and the net sale price of the stock I held in the company, I come out with a loss. So given that I was forced to sell the stock at the fixed price, does this alter the way I have to declare the Capital Loss on my Income taxes?

By: Kelly

Kelly — Wed, 18 Mar 2009 15:10:58 +0000

Thanks Carri!

By: Carri

Carri — Wed, 18 Mar 2009 13:11:10 +0000

You left out one important note: short term losses (selling a security after owning it less that 1 year) is taxed as regular income in most cases. This is a sticky point for unseasoned investors who “jump” into the market trying to make some quick trading bucks. Holding an equity for 1 year and 1 day then selling can make all the difference in what Uncle Sam demands.

By: Congressional Leaders Balk At Writing Blank Check

Congressional Leaders Balk At Writing Blank Check — Tue, 23 Sep 2008 14:44:52 +0000

[...] point out the government will actually save money on the purchase by not including the TurboTax add-on as suggested by House Ways and Means Chairman Charles [...]

By: Kelly

Kelly — Tue, 23 Sep 2008 13:39:10 +0000

Good point, thanks!

By: Vinny

Vinny — Tue, 23 Sep 2008 13:37:18 +0000

Beware the wash sale rules! Capital losses realized are not recognized if you purchase “substantially identical” securities within 30 days before or after the date of sale. The rules even apply if you sell securities in your taxable brokerage account and repurchase them in a tax-deferred account like an IRA.