Just want to be sure I understand Capital gains....

Sep 17, 2013 1 Replies

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TS 12 years ago

1) If I have 100,000 in long term gains, 10,000 in short term gains, and 50,000 in short term losses, then I pay taxes on 60,000 of long term gains.

2) If I have 10,000 in long term gains, 100,000 in short term gains, and 50,000 in short term losses, then I pay taxes on 10,000 in long term gains and 50,000 in short term gains.

Do I have that straight? If not, please explain. Thanks.

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JoeTaxpayer 12 years ago

Yes. Like for like cancel first. 100K LT gain, no LT loss. Next 10K ST gain/ 50K ST Loss leaves $40K ST loss to offset the LT gain.

Similar math, but you got it right.

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