Is offsetting interest income with capital losses allowed?

Answer by  Stan (75)

No. You can only offset capital losses with capital gains, typically short term losses to short term gains. Interest income is considered ordinary income.

Answer by  oldmom (716)

No. You may only offset capital gains with capital losses. Short term capital losses offset short term capital gains. Long term capital losses offset long term capital gains.

Answer by  PiperHaley (110)

Your allowed to take up to $3000 of a capital loss for the tax year. The rest you must carry to the next tax year up to $3000 a year.

Answer by  Leah42 (35)

You cannot offset any type of income except for capital gains with capital losses. However, you maybe able to take up to $3,000 in addition to this.