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Capital losses offset self employment income?

Asked Mar 31, 2007, 04:10 PM — 3 Answers
My wife and I have capital losses in excess of $250,000 from the sale of stocks. Now, we've started a new successful business. Are we limited to just $3000 of our losses offsetting our self employment income each year? Thanks.

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The Texas Tax Expert's Avatar
The Texas Tax Expert Posts: 310, Reputation: 34
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#2

Apr 1, 2007, 01:03 PM
Quote:
Originally Posted by Andyrose
My wife and I have capital losses in excess of $250,000 from the sale of stocks. Now, we've started a new successful business. Are we limited to just $3000 of our losses offsetting our self employment income each year? Thanks.
What kind of stock are you talking about? Are you talking about public corporations? Is this qualified small business stock -- from a corporation that you began, perhaps?
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Andyrose's Avatar
Andyrose Posts: 39, Reputation: 1
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#3

Apr 1, 2007, 06:09 PM
This is regular stock, such as IBM, Apple computer, etc. We took a huge hit in 2001 and have never recovered our losses.
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AtlantaTaxExpert Posts: 19,866, Reputation: 3723
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#4

Apr 5, 2007, 01:01 PM


Sorry, the business income is self-employment income, NOT capital gains. There is NO offset.
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