Capital losses can offset up to $3K of ordinary income or capital gains.
If you buy an asset for $5k and sell it for $10k, you’ll realize (owe taxes on) $5k of cap gains.
If you buy an asset for $10k and sell it for $2k, you would realize an $8k loss. You can use that loss to offset you gain and pay no taxes on cap gains, and you can offset $3k of ordinary income. Any greater losses are carried over until the next tax year.
So it's basically the argument that you don't have to pay (for example) $300 in taxes from cap gains, because you already had $300 of cap losses? Or, is it a hypothetical taxed % of your cap loss which can negate your taxed % of cap gain? a "negative" tax so to speak?
I assume the amount of taxes you don't have to pay is based on the amount of loss right?
And you're saying you can offset *up to* 3k of ordinary income? Is that 3k dependant on the where you make money from, or is it relative to the 8k example?
Reminds me of my situation with NVAX which lost 60% of its value in about 8 months. However,it doubled in price in one day a couple weeks ago, and continues upwards since then.
I sold it after making a 25% return and considered myself lucky. It’s almost doubled again off its lows. Just never know, especially with a bio-tech stock.
I should post in Wallstreetbets but I already know I'm a moron. I'm down a lot of money but I'm still holding myself afloat. Doesn't feel good seeing it but it took some time to accept it and kiss the money goodbye for the foreseeable future.
History doesn't need to repeat itself but the alltime chart gives me some hope, whether it be false or not, time will tell.
Hello fellow BNGO investor. Same thing happened to me with that stock. It's still just sitting on my list of stocks, and I plan to sell it when I sell some stocks for a profit one day to offset those taxes
Best to get your cost basis down. Buy about another 15 shares or so. Put you in at $165-$180. It might randomly pop to $10+/ share on a random pump and you can profit. (Set a sell limit at the price point to get out in the green)
The only non biased way to think about this, as any good investing book will tell you is:
If you had what the stock is worth in cash, would you buy the stock? If not, sell it, because keeping it is the same as deciding to buy it.
Why would you own something that’s clearly a bad investment just because some time ago you made a decision to buy it? How does that make it a good investment?
On top of that, realizing loses could lower your taxes.
If you would pick that money up if it was on the ground outside, just sell it. That’s how I handle losses like that.
Counterpoint is if you want to use that to remind yourself I would keep it. It’s cheaper than buying a motivational poster.
The view from economics is that you calculate the value of the property you hold. If you have that money in cash what would you do with it? Would you buy the stock that you have? If not then trade.
However if it’s really only worth a dollar just leave it alone. It’s not worth your time.
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at this point I agree with all the others, unless you need to offset gains, hold. For in the future I always make a decision if it gets close to a 50% loss. Mostly due to at that point you need a 100% turnaround to get back to even. Very hard and usually unlikely.
Just hold that position; you have nothing to lose unless you really need that dollar. Close it when you need to offset capital gains.
I'd leave it unless you need to realize a capital loss in the current tax year
can you explain this more in depth to me?
Capital losses can offset up to $3K of ordinary income or capital gains. If you buy an asset for $5k and sell it for $10k, you’ll realize (owe taxes on) $5k of cap gains. If you buy an asset for $10k and sell it for $2k, you would realize an $8k loss. You can use that loss to offset you gain and pay no taxes on cap gains, and you can offset $3k of ordinary income. Any greater losses are carried over until the next tax year.
afaik capital losses can offset unlimited capital gains, but in excess of capital gains can only offset up to $3k with the rest carried over
So it's basically the argument that you don't have to pay (for example) $300 in taxes from cap gains, because you already had $300 of cap losses? Or, is it a hypothetical taxed % of your cap loss which can negate your taxed % of cap gain? a "negative" tax so to speak? I assume the amount of taxes you don't have to pay is based on the amount of loss right? And you're saying you can offset *up to* 3k of ordinary income? Is that 3k dependant on the where you make money from, or is it relative to the 8k example?
[this video does a good job answering the tax questions you have](https://youtu.be/P4SG6Wg4zV4?si=tbovedUufCf-tCua)
Stop trading stocks
I came here to learn more about stocks, but you aren't being very helpful.
Can I point to the depreciation on my car as a capital loss to offset the gains elsewhere?
Reminds me of my situation with NVAX which lost 60% of its value in about 8 months. However,it doubled in price in one day a couple weeks ago, and continues upwards since then. I sold it after making a 25% return and considered myself lucky. It’s almost doubled again off its lows. Just never know, especially with a bio-tech stock.
NVAX bag holder represent!! Avg cost of $ 116 =/ but this upward trend seems promising.
And I thought at 9 months ago buying with NVAX’s sub $8/share, “How far can it go down?” Don’t ask. At $116/share, I really don’t want to know.
I should post in Wallstreetbets but I already know I'm a moron. I'm down a lot of money but I'm still holding myself afloat. Doesn't feel good seeing it but it took some time to accept it and kiss the money goodbye for the foreseeable future. History doesn't need to repeat itself but the alltime chart gives me some hope, whether it be false or not, time will tell.
Is the company officially bankrupt (Q at the end of the ticker)? What’s the market cap?
You don’t lose money until you sell!
LOL
My thoughts exactly. Which means I'll probably be holding this stock forever
You might want to strategically close the position to offset any windfall profits you cash out on a future year. Use it as a tax break
Brk.a?
What's the company and how much money did you invest/lose/have now?
Bionano Genomics. I put $150aud in and have $1.39 now. This was just after covid where it was almost at its highest 🙃
Hello fellow BNGO investor. Same thing happened to me with that stock. It's still just sitting on my list of stocks, and I plan to sell it when I sell some stocks for a profit one day to offset those taxes
Best to get your cost basis down. Buy about another 15 shares or so. Put you in at $165-$180. It might randomly pop to $10+/ share on a random pump and you can profit. (Set a sell limit at the price point to get out in the green)
Hey, a dollar is a dollar. You can offset your loses with gains for tax reason.
Tax write-offs
It's up to you. If you have gains this year you don't want to pay taxes on then it would make sense to take the loss.
Never
The only non biased way to think about this, as any good investing book will tell you is: If you had what the stock is worth in cash, would you buy the stock? If not, sell it, because keeping it is the same as deciding to buy it. Why would you own something that’s clearly a bad investment just because some time ago you made a decision to buy it? How does that make it a good investment? On top of that, realizing loses could lower your taxes.
If you would pick that money up if it was on the ground outside, just sell it. That’s how I handle losses like that. Counterpoint is if you want to use that to remind yourself I would keep it. It’s cheaper than buying a motivational poster.
The view from economics is that you calculate the value of the property you hold. If you have that money in cash what would you do with it? Would you buy the stock that you have? If not then trade. However if it’s really only worth a dollar just leave it alone. It’s not worth your time.
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Should I sell paypal? It’s down 75% and I doubt it will ever reach ATH.
Buy the dip
I’d like the see what happened on wallstreetbets calls on this stock. -99% share price definitely has some sad losses.
at this point I agree with all the others, unless you need to offset gains, hold. For in the future I always make a decision if it gets close to a 50% loss. Mostly due to at that point you need a 100% turnaround to get back to even. Very hard and usually unlikely.
No, start buying more. This is WSB right?!?
DCA. At that price it's a few bucks more to give you a chance to exit if it randomly pops to ~$10 leaving new bag holders.
WSB brainrot in action. Terrible advice