basic question about taxation

Discussion in 'Taxes and Accounting' started by cole_, Mar 31, 2018.

  1. cole_

    cole_

    do I get taxed on gains that I lost ?

    for example if I make 10k and then lose it do I owe nothing on the 10k profits I originally made?
     
  2. kandlekid

    kandlekid

    I think it would depend on when the loss occurred. If in the same year, then your net profit would be 0, and you would owe nothing. If the loss occurred in a following year, you would owe taxes on the $ 10k for the year in which the profit occurred, but you could deduct the $ 10k loss forward every year ($ 3k per year, I believe), until the balance becomes 0. So you would have 3 years where you could deduct $ 3k, and the fourth year where you could deduct $ 1k
     
    MoreLeverage and bullmarket79 like this.
  3. DaveV

    DaveV

    You also have to factor in whether these were long term or short term capital gains/losses