Spirit Airlines is my biggest loser to date over the past several years. Stock delisted and cancelled. I’m out a cool $2200. Not crazy but I’ve never had a loss over a few hundred bucks. How does it work for when I do my taxes next year as far as reducing my ordinary income. From what I read I can take a net loss up to $3000 max. In this case the $2200. When it comes tax time do I just fill out the 8949 form and Schedule D form, input my loss and call it a day?
Spirit Airlines and Stock Loss on Federal Taxes
byu/jmpstart66 ininvesting
Posted by jmpstart66
3 Comments
You’ll get all the forms you need from your brokerage. But essentially yes
Yes. That is the short version.
The longer version is capital losses first offset capital gains of the same type (short offset short, long offset long). If anything is left they offset any capital gains of the other type. If anything is left up to $3k is deducted off regular income. If anything is left whatever is left rolls forward to the next year and the process repeats.
What I find annoying about the whole thing besides that it doesn’t show as a loss in my accounts profit/loss is that the stock delisted and cancelled but the planes never stopped for a second and they started a new stock within a month or so like it never happened so we just funded the company’s bankruptcy experiment ?