Stock Loss Tax Question

Tom · Joined: 21 Nov 2007 Posts: 10

Several years ago one of my brokerage accounts went belly up due to the dot
com bust.
It's got about $1,800.00 in it after losing about $4,200.00. I want to
convert the $1,800.00 to a regular after tax IRA.
Is there any way I can take a take write off on the losses before converting
it to an IRA?
What is the correct tax strategy for this account?

Thanks,

Tom

Archived from group: misc>taxes

Arthur Kamlet · Joined: 25 Aug 2007 Posts: 2053

In article , Tom wrote:
>Several years ago one of my brokerage accounts went belly up due to the dot
>com bust.
>It's got about $1,800.00 in it after losing about $4,200.00. I want to
>convert the $1,800.00 to a regular after tax IRA.
>Is there any way I can take a take write off on the losses before converting
>it to an IRA?
>What is the correct tax strategy for this account?

Sell the stock. Claim the loss. Then use the money to contribute
to an IRA.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

Tom · Joined: 21 Nov 2007 Posts: 10

"Arthur Kamlet" wrote in message $43a$1@reader2.panix.com...
> In article , Tom
> wrote:
>>Several years ago one of my brokerage accounts went belly up due to the
>>dot
>>com bust.
>>It's got about $1,800.00 in it after losing about $4,200.00. I want to
>>convert the $1,800.00 to a regular after tax IRA.
>>Is there any way I can take a take write off on the losses before
>>converting
>>it to an IRA?
>>What is the correct tax strategy for this account?
>
>
> Sell the stock. Claim the loss. Then use the money to contribute
> to an IRA.

OK, I've never claimed a stock related tax loss can I claim the loss
against regular imcome tax?
Sorry if sounds like a dumb question .

Arthur Kamlet · Joined: 25 Aug 2007 Posts: 2053

In article , Tom wrote:
>
>"Arthur Kamlet" wrote in message
>$43a$1@reader2.panix.com...
>> In article , Tom
>> wrote:
>>>Several years ago one of my brokerage accounts went belly up due to the
>>>dot
>>>com bust.
>>>It's got about $1,800.00 in it after losing about $4,200.00. I want to
>>>convert the $1,800.00 to a regular after tax IRA.
>>>Is there any way I can take a take write off on the losses before
>>>converting
>>>it to an IRA?
>>>What is the correct tax strategy for this account?
>>
>>
>> Sell the stock. Claim the loss. Then use the money to contribute
>> to an IRA.
>
>OK, I've never claimed a stock related tax loss can I claim the loss
>against regular imcome tax?
>Sorry if sounds like a dumb question .

Fill out form 1040 Schedule D. Enter your sales price and cost.

That will let you calculate the gain or loss.

Follow exactly the line by line instructions on schedule D.

It will have you claim the loss (not more than 3000 of it; the
rest in future years) on form 1040 line 13.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

unejam · Joined: 11 Feb 2008 Posts: 1

> It will have you claim the loss (not more than 3000 of it; the
> rest in future years) on form 1040 line 13.

Can I write-off a loss if I end up positive overall? In other words,
if I lost 2000 on one stock but made 5000 on another in one year, can
I use the 2000 loss as a write-off against the 5000 even though
overall I made money on the stock market?

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

wrote:

> Can I write-off a loss if I end up positive overall? In other words,
> if I lost 2000 on one stock but made 5000 on another in one year, can
> I use the 2000 loss as a write-off against the 5000 even though
> overall I made money on the stock market?

Yes. You net all of your gains and losses on Schedule D. If the bottom
line is a loss, you are limited to $3,000 loss carried to line 13 of the
1040. The rest is carried forward to the next year's Schedule D. See the
1040 instructions.

--
Phil Marti
Clarksburg, MD