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 For 2014 Tax Tips For Year 2014.

01-12-2015, 04:17 PM
 Junior Member Join Date: Nov 2014 Posts: 3
Another short term capital gains question

So lets say you work for Walmart have no dependents and made \$40,000 dollars in 2014. And lets say during that year between January 1st and December 31st you made only two investments (to keep things simple) both of which were short-term. Lets say you purchased stock in MSFT and sold it 3 days after purchasing it resulting in a gain of \$500. Then lets say later in the year you purchased stock in GM and sold it 2 days after purchasing it resulting in a loss of \$300. As I understand it since your income from work was \$40,000 you would fall into the 25% bracket.

But here is my question. How much would you owe in taxes from these two short term sales. Would you owe 0.25*(500)=\$125 in taxes such that the \$300 loss wouldn't be counted. Or would you owe 0.25*(500-300)=\$50.

01-12-2015, 05:04 PM
 Junior Member Join Date: Nov 2014 Posts: 3
As an addendum to this question imagine instead you gained \$15000 for the MSFT sale and lost \$60 for the GM sale. Would you owe 0.25*(15000)=\$3750 or 0.25*(15000-60)=\$3735. I just added this because I read about the \$3000 deduction maximum and wasn't sure how it works.

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