Taxes and ESPP

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letsinvest
Posts: 25
Joined: Thu Jul 28, 2011 1:30 pm

Taxes and ESPP

Post by letsinvest » Thu May 02, 2013 11:24 pm

Hi,

I need an advice about taxes on the sale of ESPP. I own 2000 ESPP (500 per year for 2009, 2010, 2011 & 2012). I sold 1000 stocks from 2009 & 2010 in Feb 2013 with a profit of 10K. I have a loss of 10K carried forward from 2012 tax filing. Now my questions is:

If I sell ESPP from 2012, then can I use the short term capital gain to offset my carried forward losses from previous year, instead of using long term capital gain received from my recent sale of ESPP? In other words, can I choose the short term capital gains first and then use the remaining long term gains to offset my losses?

Thanks in advance for all for your help and suggestions.

kmok
Posts: 218
Joined: Thu Apr 25, 2013 10:17 pm

Re: Taxes and ESPP

Post by kmok » Thu May 02, 2013 11:40 pm

You cannot choose. Long term gain first offset long term losses; Short term gain offset short term losses. Then the net long term gain/loss offset net short term gain/loss.

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