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short term capital loss versus long term capital loss

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  • short term capital loss versus long term capital loss

    If I have no capital gains to offset in 2022. I sustain $15k in short term capital loss.


    I could then use $3K as deduction toward my income for the year 2022. Would $12k in short term capital losses be rolled over to the following year?

    If you have a loss is it always better to make sure it is a short term capital loss as opposed to a long term capital loss? Are you not able to use a long term capital loss against a short term capital gain in the future?

  • #2
    https://www.irs.gov/pub/irs-pdf/f8949.pdf
    https://www.irs.gov/pub/irs-pdf/f1040sd.pdf
    The IRS has instructions that are much superior to anything I could possibly add.

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    • #3
      Yes it would be rolled over.

      No it is not always better to make sure it’s a short-term loss. In practice, it doesn’t matter.

      Yes you are able to use a long-term loss against a short-term gain, assuming you have no short-term losses.

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      • #4
        yes short term losses are better than long term losses. and long term gains are better than short term gains

        bc first, like offsets like

        so if you have 12k long term losses, and realize 12k long term gains and also 12k short term gains, the short term gains which are taxed higher won't get offset

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