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Will someone please explain how capital gains work with short sales? I am using H&R Block TaxCut software, and it doesn't seem to change my federal tax amount no-matter what value I enter for a short sale. If I enter that I profitted $100,000 my taxes stay the same, and if I enter that I lost $100 it is also the same.
In reality I lost around $400 from a short sale, and was hoping that this would offset some of the gains I had from regular sales. Is there something special about short sales where they don't affect your taxes?
The settlement date was not after December 31st. I am really confused. If I tell the TaxCut software that it was not a short sale, by changing the disposition type to "No Special Type" it accounts for the gain or loss. Does anyone know if the disposition type matters for the Schedule D (Form 1040.)
In reality I lost around $400 from a short sale, and was hoping that this would offset some of the gains I had from regular sales. Is there something special about short sales where they don't affect your taxes?
The settlement date was not after December 31st. I am really confused. If I tell the TaxCut software that it was not a short sale, by changing the disposition type to "No Special Type" it accounts for the gain or loss. Does anyone know if the disposition type matters for the Schedule D (Form 1040.)
