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Not sure if this has been posted yet, if so mods remove:
Let's face it, not every trade turns out to be a winner and can in fact turn out to be a loss. You can take a little solace though in knowing that this time next year come tax filing season in the US you can actually claim up to $3,000 in capitol losses to bring your taxable income down which could allow you to gain a bit more on your tax return. Not saying you will get $3,000 more back on your tax return, but somewhere around 300-900$ is possible depending on what tax bracket you fall under, how much tax you have withheld for the year, and what tax exemptions you qualify for and claim.
This is of course you make GME your first and last trade of the year, and at a realized loss (you actually sold for a loss), and do not attempt to learn from the experience and research in other stocks to invest in and try to recoup your losses and ultimately start making some gains again.
Figured a few new traders may benefit from learning about this.
EDIT:
See the following response by u/AdorableFlirt for more clarification on this subject, but ultimately speak with your own tax advisor. https://www.reddit.com/r/GMEbagholdersclub/comments/lc76ay/psa_you_can_claim_capitol_losses_next_year_on/gm1c8y2?utm_source=share&utm_medium=web2x&context=3
If you made a profit from your original sale, you need to pay short term gains taxes on that sale. Gains are always taxed. The wash sale rule only applies when you sell for a loss and then immediately rebuy.
[edit] However, your short term losses can be counted against your short term gains when you do your taxes (unless you do something stupid in the next 30 days and rebuy). If you don’t understand how this works PLEASE have an accounting firm or service do your taxes this year!
If you sell a stock and then repurchase it within 30 days, the IRS considers this a "wash sale," and the sale is not recognized for tax purposes (which means you can’t write off your original losses). Please contact your accountant before making ANY moves for tax purposes. It’s pretty clear nobody here understands how taxes work.
https://www.irs.gov/taxtopics/tc409 please do some research before telling people they don’t qualify. Short term losses can still be written off. Also, if you do more stock trading and have Capital gains, short term Capital losses are in some cases better for your taxes than long term losses, but never worse. PLEASE research this yourself and preferably contact your accountant before making any tax decisions or making blind posts about it.
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The post was fine, the edits were problematic 😉 I understand taxes are super confusing but I was just concerned people might listen to that advice being given without looking into it themselves or consulting a professional. I’d hate for people to be screwed over twice by this. Thank you for adding the link!