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There is a $3000 cap on capital gains loss offsets. Useful for the middle class, but useless if you're Jeff Bezos.
by missedthecue 4y ago
There is a $3000 cap on capital gains loss offsets. Useful for the middle class, but useless if you're Jeff Bezos.
- slg 4y agoYou are misremembering the details of that cap. The $3k cap is for offsetting ordinary income. These people have little ordinary income. Almost all of their money would be from capital gains. A $1b capital loss can be used to completely offset a $1b capital gain and leave a tax bill of $0.
- RhysU 4y agoRight. Because the tax due on $0 net is $0.