1. It’s Test Prep Week! Visit the Test Prep Forums to learn about test prep products and services, ask questions in test-related AMA threads, take advantage of exclusive SDN member discounts, and enter to win free stuff!
Whether you’re preparing for the USMLE, COMLEX, NBDE or APMLE, Test Prep Week Exhibitors can help you ace your boards!

Tax Question regarding a short sale

Discussion in 'Finance and Investment' started by p9142, Jan 30, 2007.

  1. SDN is made possible through member donations, sponsorships, and our volunteers. Learn about SDN's nonprofit mission.
  1. p9142

    p9142 UR out of your element! 5+ Year Member

    654
    0
    Oct 25, 2005
    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.)
     
  2. SDN Members don't see this ad. About the ads.

Share This Page