Will offsetting $x in long-term gains with the exact same $x in short-term losses of the same asset class result in no taxes on the gains?
As the title says, will I have any tax consequences (aside from paperwork) if I offset an equivalent value worth of long-term gains with short-term losses? Assuming no other externalities except an annual salary.
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Assuming you have no loss carryover from 2018, it is correct that you will have zero capital gains tax if your gains and losses (long-term and short-term together) net to zero. However, if the long-term gain has already happened in 2019 and you're deciding whether to realize the short-term loss, you may be able to do better than zero: If you wait until 2020 for the loss, your 2019 gain will be taxed at the reduced long-term rates, whereas your loss will be able to offset any potential (higher-taxed) short-term gains as well as up to k of ordinary income in 2020.
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