Advice on how to liquidate stock accounts?

AttorneyMother
Sun, 02 Aug 2015 02:52:07 +0000

You can use capital losses to offset your capital gains. If you run out of capital gains in the current tax year against which to offset your capital losses, you carry them over to future years and use $3,000 per year mentioned above.

Here’s a good definition of Capital Loss Carryover:

http://www.investopedia.com/terms/c/capital-loss-carryover.asp

[quote]

The net amount of capital losses that aren’t deductible for the current tax year but can be carried over into future tax years. Net capital losses (total capital losses minus total capital gains) can only be deducted up to a maximum of $3,000 in a given tax year. Any amounts exceeding $3,000 can be put toward offsetting capital gains in the current year or simply deducted in the next year(s).