Nostr Web Client

If you only take capital losses, you are capped at subtracting $3k from your total AGI. I’m not sure what you’re missing here. If you took a $50k capital loss, it would take 17 years to recognize it. Most people have income and capital gains/losses, and that’s why you want the losses to be subtracted from your income. You lost money.

Sahil Chaturvedi 1y ago

Example:

2020 I took 20k loss. I can offset 3k against income

2021 I took 10k cap gain. I can offset 3k against income, and then I can “consume” 10k of my cap losses (out of 20k) to offset the 10k gain

Simple

Reply to this note

Please Login to reply.

Discussion

Sahil Chaturvedi 1y ago

Where did I lose money?

Sahil Chaturvedi 1y ago

Worth noting, using HIFO I’m always at a “loss” on paper

plebiANON 1y ago

You are missing the point here. Your capital losses are capped at $3k per year against your income. Your capital gains are infinity. Waiting for “next year” to maybe get a chance at offsetting losses you took in the current year is preposterous.