Schedule C and then stock market losses

Forum|Forum|5 years ago
February 15, 2021
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I cannot seem to find this answer anywhere. I have a business under my name and sell products on Amazon, Sears, Wal-Mart, and will get a form 1099-K.

I also do the stock market and currently have a loss of $10,000 for year 2020.

For example, if my overall profit from my online sales business is $30,000 on the 1099-K form, will I be able to claim the entire $10,000 loss on stocks or will I have to only claim the maximum stock loss of $3,000 and then carry over the remaining $7,000 for next years taxes?

I tried calling Turbotax and they were not able to provide a clear answer.

Anonymous_

Employee

@admiirny wrote:

.....will I have to only claim the maximum stock loss of $3,000 and then carry over the remaining $7,000 for next years taxes?

Capital losses offset capital gains but only $3,000 of an excess net capital loss can be used to offset other types of income. Therefore, the remaining $7,000 will be carried over to next year (2021).

admiirnyAuthor

So what if this year, I have a stock market gain of $20,000, will I be able to deduct the entire $7,000 loss that I carried over or will it be $3,000 again?