How do I report a stock loss on my income tax?

Answer by  cgroverla (516)

If you sell a stock at a loss, report the transaction on Schedule D of Form 1040. Capital losses can be deducted against capital gains. Net capital losses can be deducted against up to $3,000 of other income. Any excess loss is carried forward to the next year and can be used in the same way as a current loss.

Answer by  BrianSJ (524)

You need to use Schedule B to detail the extent and timing of your capital loss. You cannot claim a credit on an unrealized capital loss.

Answer by  Att4372 (1704)

A loss is reported when stock is sold. Sell price minus buy price equals loss. You reported this on Schedule D, Capital gains / losses. If you sell, then repurchase within 31 days, the loss is deferred until subsequent sale of the repurchased stock (wash sale rules).

Answer by  Kurt (4579)

I would recommend that you use a tax software like Turbo Tax or something similar. There will be a screen where they ask if you bought or sold stocks during the year and you will need to have the information available to fill out the form properly. The tax software will walk you through the process very easily.