![They’ll Take Their Pound of Flesh [1440x1038 - 95KB]](https://pic8.co/sh/n7Ax84.jpg){kind=link}
This is wrong and rather silly.
- Have a realized gain? Yep, sadly Uncle Sam wants his cut.
- Have a realized loss? You get to claim the losses against your other income (if you have any.)
I started a new business a number of years ago and lost money the first couple of years. I showed negative income for a couple years and got to carry forward the losses until I had profits to offset them.
A business is not stock speculation and they are not taxed the same way. Losses can not be realized greater than gains. i.e. if you put $10k into the market and turn it into $14k, you’ll pay gains tax on $4k, but if you turn the $10k into $5k, you have no profits to offset the losses.
You only lose if you win, you don’t win if you lose.
when someone who knows nothing about taxes tries to make a clever meme about taxes
You can only offset $3K in ordinary income with capital losses per year. With that being said you can carry forward the capital losses to offset future gains. The same is true with your net operating loss.
Right. But, you are free to itemize your gains and losses against each other.
(If you have zero gains to offset, and you have all losses because you put all your eggs in one basket ... well, you are just an idiot who can't be helped. Or, maybe just a Robinhood user. :p )
Itemize your gains and losses? You can't use capital losses as an itemized deduction. I think we have a terminology issue here. I do this for a living. In tax specific terms refer to very specific fact patterns.
(post is archived)