Anonymous asked in Business & FinanceTaxesUnited States · 7 months ago

Does a long term capital loss offset capital gains distributions or short term capital gain first?

For a given tax year, if you have a short term capital gain of $1,000, a long term capital loss of $3,000 and capital gains distributions of $5,000, can the long term capital loss offset the short term capital gain or does it offset the capital gains distributions?


4 Answers

  • 7 months ago
    Favorite Answer

    Distributions are considered Long Term so the Long Term loss offsets those first.

    In your example, you would have $1000 in Short Term gains and $2000 in Long Term gains.

  • 7 months ago

    Long term offsets long term and short term offsets short term then the excess kicks in.

  • 7 months ago

    NO. Capital gains distributions are broken down into short term and long term capital gains, and treated EXACTLY the same as 'normal' capital gains of the same kind.

  • Eva
    Lv 7
    7 months ago

    Cap gains distributions

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