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Are capital gain losses from stocks tax deductible?
I heard that up to $3000 in capital gain losses from stocks is deductible. Do I get back the entire $3000? or is there a certain percentage? If I don't have any other income, do I still get the maximum deduction? Thanks.
2 Answers
- 1 decade agoFavorite Answer
Yes, up to $3000 is tax deductible in any tax year. However, you do not get this amount back. It's not a credit, it is a deduction - meaning it will lower your income by $3000. For example, if your taxable income before accounting for the stock sale loss is $10,000, after you deduct the loss, your taxable income will be $7,000. Therefore you'll only have to pay taxes on $7,000 instead of $10,000. If you had no other income during the year, the deduction will not do you any good, you will not get money back. Any loss that is not deductible in the current year can be carried over to later years.
Source(s): Tax pro - Anonymous1 decade ago
If you are in the 15% tax bracket, you taxes *might* decrease by $450.
