Capital Gains question for Willie

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RX resident ChicAustrian
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Let's say I started 2018 with $1,000,000 invested in the stock market. By the end of 2018, I had $250,000 of realized capital losses, and my account value was down to $750,000. In 2019, I'm able to get the $250,000 back in realized capital gains and my account value is again $1,000,000. I've made no money in that period, but am I interpreting the law correctly to think that I would have to pay capital gains tax on $247,000 ($250,000 realized capital gains -$3,000 capital loss carry-forward) realized capital gains for 2019?
 

my clock is stuck on 420 time to hit this bong
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If I’m not mistaken you can only deduct the difference assuming your loss is greater then your gain
 
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Pretty sure capital gains or losses will only come into play when the stock is sold. If it’s just sitting in your account how much it goes up and down doesn’t matter tax wise.
 

RX resident ChicAustrian
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Pretty sure capital gains or losses will only come into play when the stock is sold. If it’s just sitting in your account how much it goes up and down doesn’t matter tax wise.
That's why I wrote realized.
 

Conservatives, Patriots & Huskies return to glory
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If the losses occurred first, no problem. You deduct a $ 3000 capital loss in 2018 and you carry forward a $ 247,000 loss. In 2019, you offset your $250,000 gain with the $ 247,000 carryover so you pay tax on $ 3,000.

If the gain came first, you have a problem. You pay tax on the $ 250,000 of gain in 2018 but the losses from 2019 CANNOT BE CARRIED BACK. They can only be carried forward.
 

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If the losses occurred first, no problem. You deduct a $ 3000 capital loss in 2018 and you carry forward a $ 247,000 loss. In 2019, you offset your $250,000 gain with the $ 247,000 carryover so you pay tax on $ 3,000.

If the gain came first, you have a problem. You pay tax on the $ 250,000 of gain in 2018 but the losses from 2019 CANNOT BE CARRIED BACK. They can only be carried forward.

You can take this answer/response to the Bank! cheersgif
 

RX resident ChicAustrian
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If the losses occurred first, no problem. You deduct a $ 3000 capital loss in 2018 and you carry forward a $ 247,000 loss. In 2019, you offset your $250,000 gain with the $ 247,000 carryover so you pay tax on $ 3,000.

If the gain came first, you have a problem. You pay tax on the $ 250,000 of gain in 2018 but the losses from 2019 CANNOT BE CARRIED BACK. They can only be carried forward.

Thank you

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