Stocks Loss Tax
Selling stock at a loss, what is the tax credit?
If I sell stock that my cost basis is at $18 per share and at the time I sell it is $14 per share and I sell 650 shares. Will I get to write off the $2600 loss, would I basically get this back as a federal income tax refund? I normally break even on my taxes or get a small refund. Or how does one write off a loss in stocks and mutual funds? Thanks for any answers.
You would be able to deduct $2,600 in capital losses (cap is $3,000 loss per year).
You would be able to reduce your taxable income by $2,600 but tax savings is only fraction (quick estimate is $2,600 times your tax bracket is tax savings – ie. $2,600 X 25% = $650 in tax savings)
No tax credit.
Loss of financial freedom
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