In our last blog post, we discussed the different tax treatments of qualified and nonqualified dividends. We have found that long term capital gain and qualified dividends are taxed at the same rate, which leads to the question - if I had a long term capital loss, can it be used to offset dividend income?
The answer is not directly. Although dividends and long-term capital gains are taxed at the same rates, capital losses can NOT be used to offset dividends.
However, if you have a net capital loss after offsetting all capital gains, up to $3,000 per year of capital loss may offset ordinary income which may include dividends.
The answer is not directly. Although dividends and long-term capital gains are taxed at the same rates, capital losses can NOT be used to offset dividends.
However, if you have a net capital loss after offsetting all capital gains, up to $3,000 per year of capital loss may offset ordinary income which may include dividends.
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