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Member

Capital gains and capital loss treatment

I sold stocks in 2017, made a capital gains and capital losses however all the funds were immediately used to purchase other stocks.  I thought I read that if the funds are NOT withdrawn but reinvested within 60 days then you are not subject to the capital gain or capital loss tax assessment for that year (2017)?

3 Comments
Catalyst V

Capital gains and capital loss treatment

There is no "rollover" provision for stock sales in general. You may be thinking of IRA or 401k rollovers.

Member

Capital gains and capital loss treatment

Thanks & yes based on my new research I think you are right - this provision applies when done in an IRA, 401/403 etc.  Do you know how "basis" is determined, the stocks sold were originally obtained from an Employer share option distribution?

Catalyst V

Capital gains and capital loss treatment

Were these originally shares or options? It depends on how the plan was structured. Did you recognize any income when the shares were given to you by your employer? (Would have been reported on your W-2.) If they were options originally, you should have recognized some income when the options were exercised. Any income you've already recognized (been taxed on) becomes part of the basis.