Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Can capital gain be offset by a loss other than a capital gains loss?
If one's has a capital gain which results in a $5000 is tax liability, can that this be offset by losses from something other than a capital gain loss (ex. a business loss of $5000 offsets a capital gain of $5000)?
3 Answers
- Wayne ZLv 78 years agoFavorite Answer
Not directly.
However, a $5000 capital gain and a $5000 business loss during the same year would net to $0.
For example, an individual with a $5000 capital gain and a $5000 business loss and no other income would have an adjusted gross income of $0 and would have to pay $0 taxes.
- Anonymous4 years ago
The only reason capital gains and losses and business gains and losses are classified differently is due to them being taxed at different rates.
If you don't believe in witchcraft try the Ouija board alone. Yes there is such a thing as witchcraft.
- troLv 78 years ago
not directly, no
when you enter your items on the 1040, if you have a loss in your business and you also have a cap gain loss, it only reduces your gross income, they don't offset each other
each loss is still attributable to the type of income it was, i.e. business, cap gains etc
