Comments on: Superficial Losses: Gains & Loss on Identical Properties

By: Tax Guy

Tax Guy — Sun, 05 Feb 2012 19:38:53 +0000

It depends. You have to consider the facts to determine if you are in the capital or income account.

By: MD

MD — Fri, 03 Feb 2012 22:10:44 +0000

If all my income for the year is from stocks and options,can I still have the option to treat it as capital gains or income?
Thanks

By: Vijay

Vijay — Wed, 16 Mar 2011 17:08:48 +0000

It is very informative and helpful in understanding the gain/loss in stocks.
Thanks a lot

By: Tax Guy

Tax Guy — Sat, 02 May 2009 03:37:53 +0000

If you reacquire the stock or have the right to acquire it, then the loss is superficial. You would not be able to write the call intil after April 30.

By: Cesare Berti

Cesare Berti — Sat, 02 May 2009 00:01:16 +0000

I happened to see you site referenced in the Money Saver publication. Glad I checked it out, a very useful site!

I have somewhat related question re capital losses and the superficial loss rule. If I sell stock ABC for $20.00 on April 1 to crystallize a loss can I at the same time write a call option on that stock, expiring on June 23 (about 45 days later) for lets say $21.00 without negating my ability to claim the capital loss?

By: Tax Guy

Tax Guy — Fri, 06 Mar 2009 01:41:12 +0000

By default your gains and losses are capital for shares. In any given tax year gains and losses are netted and 1/2 of excess gains are taxable. Excess capital losses can be carried back 3 years or forward indefinitely and applied to capital gains.

By: Sasi Chacko

Sasi Chacko — Thu, 05 Mar 2009 20:18:08 +0000

Great site, lots of tax information. I just have a follow up question on the subject, if I elect to have all my trades treated as “capita;” can I just add all the buys and sells on the same stock and take the difference to claim as a capital gain or loss in my tax return. Thank you.