07/31/2026
📉 YOUR PORTFOLIO IS DOWN $100,000… SO WHY DO YOU STILL HAVE TAXABLE STOCK GAINS?
This catches investors off guard all the time.
Your brokerage account might show that you’re DOWN $100K overall — but that doesn’t necessarily mean you don’t have taxable gains.
Here’s why 👇
1️⃣ TAXES ARE BASED ON WHAT YOU SOLD
The IRS generally cares about the gain or loss you REALIZED when you sold an investment — not simply what your portfolio is showing today.
For example, you could have realized $50,000 in gains from stocks you sold during the year while your remaining investments are currently down $100,000.
That $100K decline doesn’t automatically offset the $50K taxable gain if you’re still holding those investments. Those losses generally aren't realized until you sell.
So yes — your portfolio can be DOWN $100K and you can STILL owe taxes on stock gains.
2️⃣ SHORT-TERM VS. LONG-TERM MATTERS
Hold an investment for one year or less before selling? The gain is generally short-term and taxed at ordinary income tax rates.
Hold it for more than one year? It generally qualifies for the more favorable long-term capital gains rates.
The timing of your sale can make a BIG difference in your tax bill.
3️⃣ WATCH OUT FOR WASH SALES 🚨
Selling an investment at a loss doesn’t always mean you get to deduct that loss immediately.
If the wash-sale rules apply because you acquire the same or a substantially identical security within the applicable 61-day window surrounding the sale, that loss can be disallowed for now and generally added to the basis of the replacement investment.
So you could see losses on your brokerage statement while still ending up with taxable gains on your tax return.
Moral of the story: Don’t judge your tax situation by the red or green number at the top of your brokerage account.
What you SOLD, WHEN you sold it, and what you bought around those sales can matter much more.
Talk to your tax professional before year-end — tax planning can make a huge difference.
