Personal Investments • Tax filing Turbotax Stock gain vs loss offeset

Dear Boglehead Gurus!

Wanted to cross check if my understanding below is correct for tax filing through turbotax especially around stock sale gain or loss.

Part A:

1/ Id there is no capital gain to report: Only about $3000 worth of losses can be offset (?)
2/ Lets say I have a gain of 5000 by selling some company stocks. Since these are short term gains my liability will be regular income tax.
3/ Now if i have sell another stock at a loss of about $2000

then theoretically my gains of 5000 will be offset by the 3000 allowed and the additional 2000 loss on another stock. Is that a correct understanding.

Do you have to do anything special on turbotax or it just automatically offsets the losses.

Part B:

Is there a limit to this offsetting/writing off stock losses over and above the $3000 allowed. Basically what if you have $9000 worth of losses, can they be offset only by $3000 (one and done) or can that be done over three years and how does the software accommodate for this in the other two years.

Statistics: Posted by Ledzep91 — Tue Sep 10, 2024 3:27 pm — Replies 1 — Views 62

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