So I just did my taxes, and I noticed something which really bothered me. I had $1K in gains from trades last year, and I ended up having to pay some $200-300 in taxes for those gains. However, when I look at my portfolio… I’m currently a couple hundred in the red from my original investments. So essentially all my trading options have gotten me (if I were go sell now) is a few hundred in losses and a few hundred in taxes.
How do US taxes handle losses? Let’s say I sold for a loss before the end of last year tax period. Does the IRS take into account losses, or do they just jump in for their cut when you have any gains, and leave you for the fishes when you lose?
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