A capital gain and a dividend are two different things completely. You can offset a Capital Gain with Capital Losses, but you cannot offset dividends with capital losses. They are different items and are reported on different forms.
If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.
ANSWER No capital loss can only be used to reduce any capital gain, and even in then there are rules. You can not use capital gain to offset against ordinary income. NB: Personal use capital loss can not be offset against any capital gain, losses on collectibles can only be offset against other collectibles capital gain and all "other" capital loss e.g. dividends, shares, real estate can be offset against "other" capital gain.
A CDN corporation can not apply non capital losses against dividend income it can only be used to reduce capital gain. There are rules and regulations that go along with this as well. You can not use capital gain to offset normal income.
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
Yes.
If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.
ANSWER No capital loss can only be used to reduce any capital gain, and even in then there are rules. You can not use capital gain to offset against ordinary income. NB: Personal use capital loss can not be offset against any capital gain, losses on collectibles can only be offset against other collectibles capital gain and all "other" capital loss e.g. dividends, shares, real estate can be offset against "other" capital gain.
A CDN corporation can not apply non capital losses against dividend income it can only be used to reduce capital gain. There are rules and regulations that go along with this as well. You can not use capital gain to offset normal income.
dividends are the payments made from the profits in which a person owns stock, and capital gain is the increase in value of a capital asset.
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
Yes
Yes.
The federal tax rate for what are known as "qualifying dividends" is the same as the long term capital gains tax rate. The rate for all other dividends is the same as the ordinary income rate. Mutual funds sometimes issue a dividend known as a "capital gains dividend" or a "capital gains distribution." This is a capital gain passed through from the fund and is treated as a long term capital gain to the shareholder.
Short offset shorts first, then they offset longs. Your better to have them offset short, as short is taxed at ordinary rate and long at special lower rate. A stock sale is a capital gain/loss transaction.
That is the way that it will work when you use the schedule D of the 1040 income tax return correctly and you have a large capital gain that would offset the large capital loss.
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