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Question

I'm starting a business. Can I offset business expenses from short term capital gains from selling stocks?

Forum|Forum|3 years ago
March 14, 2023
2 replies
0 views

I will incur business startup expenses this year. I am also trying to build capital by selling stocks. How can I offset the shortterm capital gains tax with the business startup expenses so that I'm not just giving it all to the IRS?

TurboTax Deluxe Online

Employee

A short term capital loss will first be used to offset capital short and then long term gains. Any amount remaining offsets combined income in an amount up to $3,000. Any remaining loss is carried over to the next year.

if you have both net short term and long term gains the ordinary losses will first offset net short-term gains and any excess of ordinary losses will then offset long-term gains and qualified dividends.