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I lost money big time last year on trading and I just received my statement summary from my broker. Even though I lost money, do i have to report it?
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http://www.fairmark.com/capgain/capgain.htm A lot of good info here. I lost a bit myself. Reporting your losses means your refund will be larger. It makes no sense to not report.
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If you lost more than $3000.00 you can carry it over to the next year... if you have capital gains your losses from the previous year can help off-set taxes you might owe on the capital gains.
-------------------- Choosing individual stocks without any idea of what you're looking for (or without reliable information) is like running through a dynamite factory with a burning match. You may live, but your still an idiot.
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the thing is on the statement it says aggregate profit or loss of zero. Is this because I'm still holding onto it? Can I still report a loss even though I'm still holding onto it?
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No... you can not report a loss unless you have sold the position..
quote:Originally posted by RagsToRiches: the thing is on the statement it says aggregate profit or loss of zero. Is this because I'm still holding onto it? Can I still report a loss even though I'm still holding onto it?
posted
Actually, I believe that for all capital gains (with maybe a few exceptions) even if you don't hold for a year the max is currently 15% tax. The 28% on capital gains on stocks held for less than a year and a day was dropped; it doesn't apply to 2005.
-------------------- May your trading build your character as well as your portfolio.
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Any gains on stock not held for a year is taxed as regular income. What has changed recently is dividends are taxed at the capital gains rate if you hold the stock for like 120 days.( I think at least 60 days before ex-dividend date.)
-------------------- I just want to make enough money to be eccentric.
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IRS will have a copy of your 1099-B statement so you will want to show the loss with a Schedule D, otherwise they will see the extra gain you had to your income.
quote:Originally posted by RagsToRiches: I lost money big time last year on trading and I just received my statement summary from my broker. Even though I lost money, do i have to report it?
So i made a profit of about 1,500 (all short term) from trading pennies this year, but my actual income is like 2,500 from regular work hours. Will I have to pay taxes on my 1,500 or will I be exempt? Or will i have to pay on the marginal revenue above the exemption?
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Need some advice from fellow E-Trade account holders.
The 1099 Consolidated form only shows what was sold and is reported to the IRS. The detailed income statement shows all that was bought but is for information purposes only. This don't seem right at all because it doesn't show wether you had overall gains or losses like you would see with a 1099-B.
Can someone shed some light on how I would file in order to show my losses?
-------------------- Pennies...Get in, Get out, Get a profit!
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Yes, only gross proceeds from the 1099-b are reported to the IRS. It is then your responsibility to tell the IRS what the cost for each trade was and report that on the sched-D to figure your total gains and losses. it would be easy to cheat but if you were ever audited you would be in serious trouble.
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