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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13314
Experience:  15years with H & R Block. Divisional leader, Instructor
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I want to sell a stock position at a loss of 10 000 dollars

Customer Question

I want to sell a stock position at a loss of 10 000 dollars in 2015. I bought the position for 30 000 dollars and am selling for $20 000. I am not selling any other stocks. I have a dividend income for 2015 of $25 000 which would make a tax bill for dividends around $3750.
Let's assume a similar dividend income for 2016, and 2017.
How far into the future can I apply a $10 000 loss towards general income.
My understanding is that you can apply up to $3000 per year of a stock loss towards your general income tax return.
Thanks!
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello,

Your understanding is correct. You first apply the loss to other gains in the year, then you apply the $3000 against income.

So in the first year assuming you have no gains to absorb any of the loss you would apply $3000 to income leaving $7000. Second year (assuming no capital gains) $3000 would be used leaving $4000, 3rd year $3000 leaving $1000 for the remaining 4th year.

You cannot skip a year and save for a future year but you can carry forward until used up. No time limit.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Robin D. replied 1 year ago.

Please advise if you need more information or rating in a positive way is acceptable.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

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