No, net operating losses (NOLs) generally cannot offset capital gains. NOLs primarily offset ordinary income, while capital gains are treated separately for tax purposes. However, if a taxpayer has both NOLs and capital gains, they can use the NOLs to reduce their overall taxable income, but not directly against the capital gains themselves. It's advisable to consult a tax professional for specific situations.
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 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.
Yes.
If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
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 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.
Yes.
If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.
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, an individual can use ordinary losses to offset capital gains. Specifically, if an individual has an ordinary loss from a business or other trade, it can be deducted against ordinary income, which may include capital gains. However, capital losses can only offset capital gains. If the ordinary loss exceeds capital gains, the excess can typically be used to offset ordinary income, subject to certain limitations.
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.
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.
can long term gains be offset by short term losses
You would NOT have a capital gain tax to pay when you have a loss on the sale of stock. You WILL HAVE to report the transaction on the schedule D of the 1040 tax form and up to 3000 of loss for the year will be used to offset up to 3000 of ordinary income for the year any amount of the remaining loss will then be carried over to the next years until the loss is completely used up.
No. This should be treated as a capital gain/loss. If you bought the land for $20,000 and sold it for $17,000 you do not have any income or a gain. On the contrary, you have a $3,000 capital loss which can be used to offset some of your income and decrease your taxes.