I invested my inheritance in stock and lost most of it then with drew the remaining, I received no gains, is the money I withdrew taxable? I started with 72,000 and with drew 57,000, which was the balance of my inheritance...
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I invested my inheritance in stock and lost most of it then with drew the remaining, I received no gains, is the money I withdrew taxable? I started with 72,000 and with drew 57,000, which was the balance of my inheritance...
You have long term capital loss. You must claim the loss on schedule D (Form 1040). Your cost basis is the fair market value of the stocks on the date of inheritance. The money you drew is not taxable.
Further, the loss carries over to future years to offset other income UP TO $3,000. So, every year, $3,000 of the loss is burned until it is used up, or until you die.
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