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    Andyrose's Avatar
    Andyrose Posts: 37, Reputation: 1
    Junior Member
    		  
    #1

    Mar 31, 2007, 04:10 PM
    Capital losses offset self employment income?
    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.
    The Texas Tax Expert's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
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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?
    Andyrose's Avatar
    Andyrose Posts: 37, 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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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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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