You bought 1,000 shares of Tund Corp. stock for $77.25 per share and sold it for $75.00 per share within the same year. How will your gain or loss be treated when you file your taxes

Question

Drake Mcintosh

Business

2 April, 09:02

You bought 1,000 shares of Tund Corp. stock for $77.25 per share and sold it for $75.00 per share within the same year. How will your gain or loss be treated when you file your taxes

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Evan Spears · Answer 1

Capital Loss

Deducted as loss on the tax return

Explanation:

Capital Loss refers to losses that occur when you make and investment into something and then sell it at a later time for a lower price than at what was originally purchased. For example:

the 1,000 shares were originally purchased at $77.25 per share and then sold for $75.

The capital loss incurred is [ ($77.25 - $75) x 1000) ] = $2250.

If the tax payer's capital losses are greater than the capital gains, the difference of the two amounts will be deducted as a loss on the tax return since it is an investment property. This cannot be done for those held for personal use.