Do I have to pay taxes if my losses were greater than my gains? ?
I lost 7k in investment when the market crash, Made 10k back day trading stocks and then my luck ran out and I lost 7k again day trading Tesla.
My question is, do I have to pay taxes? ( I know I am stupid but I would appreciate it if someone can answer my question)
- kswck2Lv 71 month ago
Depends on a Lot of other factors. But you Do have to file taxes anyway, whether or not you have a loss. BUT, the loss can be spread out over Years if necessary.
- StephenWeinsteinLv 71 month ago
If you fill out the paperwork correctly and report everything, no. You would have a net loss of $4000, off which $3000 could be used to offset ordinary income and $1000 would be carried over to next year.
If you just ignore it, then you would have to pay, plus you'd also have to pay a penalty for not reporting it.
- zman492Lv 71 month ago
Assuming you are talking about United States income taxes, when capital losses exceed capital gains you do not pay any taxes on the capital gains. In fact, you can use the net capital loss to reduce the amount of regular income that is taxable.
- KerriLv 51 month ago
If that is the extent of your income activity ... you lost $14k and made $10k selling short term stock holdings, that's a net of minus $4k .... then you do not have any taxable income.