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posted Oct 30, 2019 9:45:29 PM

Is it a tax gain or loss for liquidated stocks from margin trading account?

I had a margin tradimg account where stocks were liquidated due to a margin call.  The transaction itself was a gain, but the full amount was used to cover the call.  Is this considered a capital gain or loss from Tax reporting perspective?

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Moderator
Oct 30, 2019 9:45:30 PM

The gain/loss would be based on the stock transaction, not the amount that the brokerage took after. However, you can deduct any margin interest charged as an expense.