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When is the deadline to sell your stocks this year to get your losses back in taxes? Is it at the end of the year? Also, most of my loss were in the year 2005 but I never got to sell it in 2005 so can i carry that loss into my taxes for this year? How do I go about reporting my loss so I can get it back? And what is the maximum? Thanks.
Posts: 785 | From: la | Registered: May 2005
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You record the losses in the year in which you sell the stock. Just because the stock decreases in value it isn't considered a loss until you sell.
-------------------- "Be a man of your word and you will be successful in life." My Grandfather. Posts: 47 | From: South Carolina | Registered: Feb 2006
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I made many buys and sells in the year 2005. In between those sells and buys, I've slowly lost money. But I did not sell coming into the year 2006 therefore I was not able to report it. Can I sell all my stocks right now and report all my losses for 2005 for my 2006 taxes?
Posts: 785 | From: la | Registered: May 2005
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i guess the main question i'm asking is can i report my 2005 loss on my 2006 taxes if I haven't already did it?
Posts: 785 | From: la | Registered: May 2005
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You would need to file an amended return for 05 if you sold in 05. If the loss exceeds 3k then you would carry the amount over 3k to your 06 return. The maximum deductable over your gains is 3k per year.
You only have a loss or gain in the year you sell.
Contact a CPA.
Posts: 3417 | From: Cleveland, Ohio | Registered: Jan 2000
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MoMoMoney........if you slowly lost money doing your trades......each time you sold you have to claim that loss or gain in the year you sold it. So you would have to fill out an amended tax return for 2005. You also have to be careful if you sell a stock for a loss and then buy it back before 30 days....you get screwed on that if you did any of that. You don't actually get your money you lost back either. You just get to write off a small %. If they actually did give you your losses back.......don't you think everyone would be HIGH RISK INVESTORS? Well....I can't think of the term for when you sell a stock for a loss and buy it back. But you can sell the stocks now and claim any losses you had this year.....just make sure you wait 30 days before buying back in.........ohh and by the way.....the term is called a "WASH"
Posts: 2367 | From: Detroit | Registered: Mar 2005
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where can i contact a cpa. Can you reccomend one? And how much does it cost to get advice from one? Thanks for your help.
Posts: 785 | From: la | Registered: May 2005
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Look in the yellow pages or call Charles Schwabb if you don't know what you are doing. Chuck will cost a bit more than an independant but they will take you through it at your pace.
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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The taxman cometh. You can't avoid capital gains tax on stock sales. That's the drawback of the market. Plan on giving 1/3 of what you make to G. Dubya's war chest. That's why only big gains are worth celebrating in my own humble opinion. If you lose money you can deduct up to $3,000 off your taxes for the taxable year.
Commodities, on the other hand (i.e.; gold, silver, etc.) are terrific for taxes. You can sell $600 worth at a time to your local dealer w/o signing a tax receipt (or is it $700?). So if you have an ounce of gold or a few bars of silver you can sell it off for cash with Uncle Sam none the wiser. Any more than the above amount(s) per transaction and you will have to pay the tax on same.
If you have a lot of gold/silver to sell you can go to multiple dealers or space the sales several days apart. Alas, with stocks you have no such choice.
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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