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CFEPro789, Accountant
Category: Tax
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Experience:  Former IRS Agent, Master of Accountancy, Tax Return Preparer
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I invested 40k in a reit in 1997 which paid quartly dividends

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I invested 40k in a reit in 1997 which paid quartly dividends of a total in 15 yrs 16k they were not listed on stockmarket until 10-13 I paid income tax on these dividends, I can sell these shares to the new company for a loss per share of 3.00 per share, this will give me approx. 17k total plus the 16k of dividends this was not a IRA can I declare a capital loss?

jgdarragh2285 :

Hi my name is XXXXX XXXXX I will be helping you today with your tax question. The dividends were taxed and you then reinvested them from my understanding, so they are now part of your basis. So your basis will be 56k. If you sell the shares for a loss, and net approx $33K then you will have a long term capital loss of $22k which you can use to offset other capital gains this year or if you have none you can take $3k of that loss this year and carry the remainder forward.

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