Write-off capital losses

I've exercised and sold my company options last year.

The proceeds were ~10,000 and after all taxes were withdrawn. This was reported on my W-2 form in box 12c with letter "V". On another hand, I have investment capital losses that should off-set my gains from the options sell. My assumption was that I could write-off my losses against my options gains. Is it correct assumption? I used TurboTax, but not sure if this was taken into account. How do I make sure of that? Any help is greatly appreciated.

Thx YuriW

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Reply to
Yuri Weinstein
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snipped-for-privacy@gmail.com (Yuri) posted:

Both items should have been entered on Schedule D. You should find such a Schedule has been created as a part of your tax file, if you entered the data. Then, just verify that the amounts shown are correct and match your records. And Yes, your capital losses should offset capital gains, to the extent of the total loss. Bill

Reply to
Bill

No. The gain from the options was wage income, which is why it wound up on your W-2. When you report it on Schedule D you include the amount treated as wages in your basis. A same-day exercise/sale usually results in a short-term capital loss equal to the fees. A great source for information on options is

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I don't know if you would have made the same decision had you understood the rules, but for lurkers, the time to validate assumptions is before you act, not after.

Check to see if Schedule D looks like I said it would. If it doesn't, something's wrong.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

Only to the extent of $3000 of capital losses.

In other words, if you have up to $3000 in net capital losses for the year, you can take the whole loss. If you have more, you can only take $3000 and must carry the rest to next year. For example, if you have a $20000 loss, you take $3000 of it this year and carry the $17000 over to next year.

Look at Line 13 of Form 1040 as well as the entries on Schedule D. And look for the "Capital Loss Carryover Worksheet" as well.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

Reply to
Rich Carreiro

Thank you for the help! I did not get 1099-B form. How (what form) can I deduct my transaction commissions?

Reply to
Yuri Weinstein (HotMail)

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