Article: Tax liability on capital gains is an issue of netting pluses vs. minuses

Avrum D. Lank

Tax liability on capital gains is an issue of netting pluses vs. minuses

By AVRUM D. LANK of the Journal Sentinel staff

Saturday, July 6, 2002

Q. I will be selling some stock shortly and generating a little less than $3,000 in losses. Hopefully, later in the year I will be able to generate some gains and balance them against the losses.

While I know that the tax rate on capital gains is higher if the stock is held less than a year, does that matter if I am netting that short-term gain against a long-term loss?

S.N., via the Internet

A. Not exactly, so bear with me.

When it comes time to file your income tax, you will be required to net your long-term capital gains against your ...

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