What the heck? I thought short term gains/losses were totally independent from long term gains/losses. On my tax software, I enter that for the year 2016 I recognized a long term capital gain of $5,000 and my tax refund amount does not change (which is correct as I am in the 0% long term capital gains bracket). I then enter that I recognized a short term capital loss of $4000 and my tax refund amount does not change...which seems to me like my short term losses are only offsetting my long term gains and not creating a tax benefit. Doesn't make any sense. Can someone explain this to me please?
Also, even if you're in the 0% long term capital gains bracket, are long term capital losses deductible at the same rate that short term capital losses are? I always thought that they were not but, on my tax software, if I enter that I realized a long term capital loss of $1000 (making sure no other gains/losses are entered as to not interfere/offset), my tax refund increases by $150 (my ordinary income tax bracket is 15%). If anyone could chime in I'd really appreciate it. I really can't figure this one out. Thanks.
Submitted April 07, 2017 at 11:59PM by Virus4762 http://ift.tt/2oOkAYG
