<h1>Understanding Capital Gains and Losses in Stock Trading</h1>
Eiler?
Yep.
Says here you made $250,000 from trading stocks this year?
Yep.
Hey, we’ll take our taxes. You owe us.
Nothing.
Gains from stocks are taxed at your normal income rate or at capital gains rates.
Yes, they are. But I also locked in $250,000 of losses on other stocks because the market is down this year.
But it says here you still own those identical stocks.
No, it says I own similar stocks.
Similar?
Yep. You see, by selling one stock, I lock in that loss on paper. Then, I immediately re-buy a very similar stock to stay 100% invested in the market.
But you have to wait 30 days to do that.
That's only if I re-buy the identical stock.
And you re-bought similar stocks.
And we get nothing.