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Posted by Herb Smith on September 24, 2007, 8:48 pm
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> I will have a great deal of long term capital gains this
> year. I need to raise some cash by selling off investments.
> The only losses available to me are short term. Can I offset
> long term capital gains with short term losses? Any
> disadvantage to doing this? At the moment I have no short
> term capital gains.
Have you read the Schedule D instructions?
First, you calculate and net short term gains and losses,
then do the same for long term gains and losses.
If after doing the above, you have short term losses and
long term gains, you can net them together. Same with short
term gains and long term losses.
If the result is a loss - either short or long term - you
can offset up to $3000 against ordinary income. Anything
beyond that is carried over to the following year(s), where
it is treated the same way.
Just follow the form line instructions and you will get the
correct result.
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