My company granted me restricted stock in 2007, let's say $10,000 valued at that time. Taxes were due at the time of grant, so the federal portion was 25%, or $2500. The stock price has declined to only 5% of its previous value, and I sold it at the end of 2008 hoping to get back the tax I paid. The problem is that Schedule D only allows a maximum of $3000 loss in a year (bigger losses can be carried forward), and I won't be able re recover anywhere near the $2500 that I paid. It seems the IRS is unfairly profiting from my loss.
can I get my overpayment of tax back?
Mar 06, 2009
2 Replies
I don't understand why taxes were due at the time of grant of restricted stock. No taxes are due until the restrictions are lifted (typically when the stock vests) unless you make a Section
83(b) election to be taxed.All that being said, the IRS is not your problem. If you are dissatisfied with the $3000 limit on capital losses you need to contact the people who pass the tax laws: your representative in the US House of Representatives and your two US senators.
That is true. During the election cycle I heard a proposal to increase this to $15,000 per year. That proposal seemed to go away in a hurry.
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