I am planning to sell useless stocks that I lost about 40k from etrade. I am going to liquidate some of the stocks I own from the stock option I had while I was working for a startup (it went public). I will sell about 100k worth of shares. This is in my Citibank brokerage account. When reporting tax, can I use the capital loss of 40k to write off tax of capital gain I will have? How does it work? Both are longer-term investments TC: 450k
Watch out for wash sale
Whats that
Does not apply for two sales.
Yes but depending on your captain gain from selling the 100k shares, you might have more loss than gains and you can not apply more than 3k of the extra loss per year on your tax
For long term capital gains, tax is 20% for me = 20k. If Capital loss is 40k ( any rate here?), i can write off 20k + report 3k loss? And 20k loss will go waste?
Not go to waste the loss can be offset
Yes. Net gain will be total gain - loss