Long & Short term capital gains / losses

If I had $3000 short-term capital loss and $3000 long term capital gain, what will be my net position? (I tried to following schedule A&D try to figure out, but got lost. :->_$B!K_(B Thanks.

Reply to
My interest
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Zero.

You'll have a $3000 loss in Part I of Sched D, a $3000 gain in Part II of Sched D, and they'll net to zero in Part III of Sched D, and on Form 1040.

-- Rich Carreiro snipped-for-privacy@rlcarr.com

Reply to
Rich Carreiro

If I had $3000 short-term capital loss and $3000 long term capital

The problem is you paid too much attention to that alphabet on the wall in kindergarten. Had you started with Schedule D you'd have seen that this is all dealt with there, which would mean you'd never have gotten to Schedule A, which would mean you'd never have gotten confused trying to find something on Schedule A that isn't there.

Assuming you paid appropriate attention in arithmetic, you'll see that the bottom line is zero.

Reply to
Phil Marti

So does this mean that you can benefit from favorable lower rate on long term capital gains only if you have a net combined profit?

Reply to
My interest

Well, that's one way to view it, I guess. A loss of $3K short or long will wipe out the LT gain. If you took the loss in year 1 and gain in year 2, you'd be ahead. The loss would go against ordinary income, and the gain would be long term. I'd warn, however, again letting the tax tail wag the investing dog. Delay the gain and the gain may just evaporate. Of course this decision becomes easier as December starts to close in. Joe

Reply to
joetaxpayer

Another way to view it is that if you've sold some securities at a loss, you can take some gains this year, and you won't be taxed on them, up to the amount of your losses. Because the losses offset any types of gains, you can safely take short-term gains if you want.

Reply to
Barry Margolin

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