Especially when you have capital gain this year, you want to evaluate if you should recognize certain capital losses.
The capital loss generally can’t be deducted more than $3,000 against the ordinary income per year. The disallowed portion is carried forward.
However, the capital loss can be offset against the capital gain. This is an important tax planning with your financial advisor to optimize the deduction.
Some stocks might become worthless when the issuing companies stop operating or even filing bankruptcy. However, you might not be claim the loss unless the issuing companies really dissolve or you sell the stocks. Be proactive to find out your options in selling them and recognize the loss in the year you know you have other capital gain to offset.
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