The bottom line for short- and
long-term gains and losses
Radio Transcript, 60 seconds, for use during week
of Jan. 21.
This is an Invest Wisely minute brought to you by Iowa State
If you sold assets in 2007 and have both short- and long-term
gains or losses to pay taxes on… here’s how you
get to the bottom line.
First subtract long-term losses from long-term gains. Then
subtract short-term losses from short-term gains. If both
of these are gains, the amounts will each be taxed at their appropriate
However, if you have a long-term gain and a short-term capital
loss, the loss is subtracted from the gain.
For example, if you have a $5,000 long-term capital gain and
a $4,000 short-term capital loss, the net value of $1,000 is
what will be taxed.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.