If I profit 80k in the stock options market but then lose 50k on other options would I pay taxes on 80-50=30?

12 Answers

  • 1 month ago

    your net profit is 30 but total turnover is 130K

    Any income or loss that arises from the trading of Futures and Options is to be treated and considered as business income or business loss. Any transactions that take place during Futures and Options trading are to be deemed non speculative transactions. This means than any profits gleaned from such trading would be taxed in the same manner as income or profits acquired from the carrying on of any other kind of business. Therefore the taxpayer can claim deductions on tax for any expenses he may have incurred while trading in Futures and Options such as telephone bills, electricity bills, internet bills etc.

    Taxpayers who regularly carry out transactions with regards to Futures and Options trading are permitted to claim tax deductions on the following expenses, since these can be deemed to be expenses arising from the conducting of business:

    Postage charges or fees

    Travel and conveyance expenditure

    Telephone or fax expenses

    Internet related expenses

    Depreciation on any asset that has been used by the trader for business purposesShould any income or profits arising from the trading of Futures and Options be treated as business income then the following ramifications come into play:Any expenditure relating to administration is considered to be deductibleSecurities Transaction Tax or STT will be deemed to be deductible as wellAny loss arising from trading of Futures and Options can be offset against any income arising from the taxpayer’s residential property, any other business as well as any other source barring the taxpayer’s regular salary.Any losses that have not been absorbed can be offset against any income the taxpayer receives from any other business, and can be carried ahead for a maximum period of 8 years. Losses incurred through Futures and Options trading can be carried ahead to subsequent years and offset against any income that the individual may receive during this time. However, this can only take place if the individual in question does not offset his or her losses against any income received from other sources during the relevant financial year.All losses that an individual incurs through Futures and Options trading is permitted to be offset against any income he or she earns from other business sources, with the exception of income earned through salary. For any loss incurred through Futures and Options trading that an individual wishes to carry forward or offset, he or she is required to provide full disclosure of such losses in his or her Income Tax Returns, and these tax returns will be required to be filed prior to the prescribed filing date.In case such disclosure of loss is not provided by the individual in his or her income tax returns, then the individual in question will not be permitted to carry forward the loss to subsequent years.Any losses claimed by the individual in his or her Income Tax Returns that have been filed following the expiry of the prescribed filing date, will not be permitted to be carried forward to subsequent years.

    Any loss will be treated as short term capital loss, which can be offset against any capital gains acquired by the taxpayer through other sources. This loss can be carried ahead for a maximum period of 8 years

  • 1 month ago

    It depends on your net gain. It also depends on whether or not these are short or long-term gains--and your filing status. Long-term capital gains are taxed at a lower rate. You pay capital gains tax on the sale price MINUS the purchase price. Example; you buy a stock for $10, sell for $100. Your net gain is $90. You add that to your income. If the total is less than $40K, you pay no tax on the sale. Losses are deducted from profits. Profits are added to your income. If they are short-term gains, (you've owned them for a year or less), you pay a higher rate of tax than if you've owned them for more than one year. All this you will have to figure out by what your particular situation is. Filing status counts too. Income caps are different for married vs. single taxpayers. 

    Here's a website with a little calculator that will help you figure it out:  


  • 1 month ago

    If you fill out the paperwork correctly, yes.

  • 1 month ago

    you may get a tax for with a letter and number from the stock market with your total earnings

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  • Judy
    Lv 7
    1 month ago

    30K if all the same year....................

  • 1 month ago

    Typically that would be correct, but it depends upon the time frame involved.

  • kswck2
    Lv 7
    1 month ago

    Yes, you would. But that calculation is for your tax accountant. 

  • 1 month ago

    Assuming this was in the same tax year, you offset them and pay only on the total.  There are some other tax situations where you can carry losses forward to future years.  If you are trading enough to have that much gain and loss, you would be very wise to talk to a tax professional.

  • Rick
    Lv 6
    1 month ago

    basically, yes, but you best talk to a professional first to make sure .............

  • Anonymous
    1 month ago

    Yes. 80 minus 50 is 30. Anymore 7th grade arithmetic questions?

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