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 » From: Bethany, MO Dear TaxMama: I really enjoy your site - wish I had found it sooner. We are 67 and 66 years old. We have owned 2000 shares of stock that we paid $7. ea for, $14,000. It has dropped to a current value of about $5,000 total. If we were to sell, could the loss be deducted? I know we pay whenever there is a profit on a sale, but how about a loss? Also can 60% of our nursing home insurance be deducted like our self-employed health insurance is? Thanks. Rosalie Dear Rosalie, Thanks so much for all the kind words. Yes, you can deduct the losses on your stock. Unfortunately, the deductions are limited to only $3,000 per year above any other profits you might have. So, the year you want to sell those losers, do some planning. See if you can also sell something at a profit. You'd get that profit essentially tax-free that year. Otherwise, you'd have to spread that loss over several years. Your nursing home insurance is a medical expense. You can deduct 100% of it, sort of. The sort of? Since it's a medical expense, it first has to me more than 7.5% of your Adjusted Gross Income (that's the number at the bottom of your Form 1040 page 1). Then, you also have to be able to itemize. But if you have a mortgage, you're already itemizing, so .... I do hope this helps. Best wishes, Eva Rosenberg Your TaxMama  |
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