The National Directory of Certified Public Accountants

Ask A CPA - Capital Gains & Losses

Is The Total Amount Of The Capital Loss Deductible?

You are allowed to offset capital "gains" with capital "losses". If you have capital gains equal to or greater than the stock loss, then the current year stock loss is fully deductible. If you have no other capital gains or the loss exceeds the capital gains, then the current year stock loss is limited to the lessor amount of the loss that exceeds the gain or $3,000 (1,500 if your filing as married filing separate status). If the loss is limited in the current year, then you may carry over the unused limited amount into future years until it is completely used up.

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