Author Topic: Sell stock with gains since LC/Prosper are Short Term Capital Losses?  (Read 3232 times)

PeerSocialLending

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I have a tax question and this is an area I'm trying to educate myself on so I appreciate any thoughts.

I have one stock holding that I bought in Feb 2013. It's only worth about $1,500, but I'm up about 70% on the investment overall.    Since it's such a small amount I'm considering selling and rolling it into other investments.  By the looks of it, I'll have about $290 of capital losses this year with LC.  Will this help offset some of the gains? What happens to my capital losses if I have no capital gains against it for the current year?  Do losses simply 'roll over' to the next year?

I hope this will help me better understand the tax implications of LC/Prosper as well. Thanks!
-Ryan
p2p lending blogger @ www.peersociallending.com

bobeubanks

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Re: Sell stock with gains since LC/Prosper are Short Term Capital Losses?
« Reply #1 on: November 06, 2014, 12:32:14 PM »
What happens to my capital losses if I have no capital gains against it for the current year?  Do losses simply 'roll over' to the next year?

Net capital losses up to $3000 can offset any income. Net capital losses beyond $3000 carries over year to year until used up.

PeerSocialLending

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Re: Sell stock with gains since LC/Prosper are Short Term Capital Losses?
« Reply #2 on: November 06, 2014, 01:30:23 PM »
Ok and if what I'm understanding correctly from what I read, if I don't have any capital gains to offset the losses - it will be offset ordinary income.
-Ryan
p2p lending blogger @ www.peersociallending.com

ca-lender

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Re: Sell stock with gains since LC/Prosper are Short Term Capital Losses?
« Reply #3 on: November 12, 2014, 02:16:19 PM »
Yes, your capital losses, up to $3000 maximum per year, will be deducted from other ordinary income (salary, interest, etc).

If your net losses are greater then $3000, then you will deduct $3000 in the current year, and the amount over $3000 gets carried forward, indefinitely, to be used up to $3000 per year, until all used up.