There’s been a ton of activity in the stock market recently and we’ve been getting lots of questions about capital gains and losses.
Do I have to report my stock losses?
If you lose money in the stock market, you still have to report it.
Any sale of a security, whether it’s a gain or loss, needs to be reported on your annual tax return.
Your brokerage will provide you with form 1099-B to report those gains or losses.
Losing money in the stock market is never fun, BUT, those losses can benefit you on your tax return.
Those losses can be used as a deduction towards your total income making your total taxable income less!
What this means is that you’ll actually end up saving money on your taxes by reporting those losses.
Feel free to reach out with any questions, we’re happy to help!