Originally Posted by Sxr951
Hello all!..got ? If u would take a moment.
#1;Can I deduct day trade stock loss ofor 5000 from my 2014 fed tax.
I owe 3000 for fed tax for 2014
#2;And what forms to fill out. The much!!,,,
#1; you need to divide capital losses into short-term and long-term losses. Short-term losses occur on stock held for less than 1 year. Long-term losses occur on stock held for more than a year.You MAY subtract short-term losses from short-term gains, and then subtract long-term losses from long-term gains. You then combine the net short-term and net long-term results to get your net result.For instance, say, you had a net short-term loss of $1.5K and a net long-term gain of $2K you subtract $1.5K from $2K to get a final net long-term gain of $500. You figure your short-term and long-term results and your net final result on Form 8949 and report the final amount on Sch D.Your losing stock investment is a financial loss, capital loss, I mean, that you can be deductible on your tax return; on your return, apply capital losses to offset capital gains. There is no limit to the capital gains you can offset with capital losses. If your capital losses are greater than your capital gains, as of 2012 you could deduct up to $3k of your losses from earned income.
If your capital losses exceed your capital gains plus $3k, you can carry the excess loss over to the next year and apply it to next year’s capital gains and up to $3k of earned income. Your broker reports your gains / losses to you and to the IRS on Form 1099-B.
#2;You need to file SCh D of 1040 and form 8949;