Submitted By: someone
Answered: February 5, 2023 8:33 pm

Can capital losses on bond sales be used to offset interest on bonds?

Capital losses can be used to offset capital gains. If there are excess losses, they can be used to offset up to $3,000 of ordinary income ($1,500 for married persons filing separately), which includes interest on bonds that are not tax-exempt. Any excess loss can be carried forward indefinitely and used in the same manner.

Tax Glossary


A tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within 60 days.

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