in a given year you have to pay taxes on 50K even though you lost 10K over the given year... doesnt make sense?
They are wrong.
did you buy any of the same stock after Jan 1st and was it within 60 days that you sold it before january 1st ?
You pay tax on a net gain.
Trust me. It's the over-all gain/loss. You can deduct up to 3K per year in losses. Take care.
yeah you said it better than me. It's not the same if you have long and short term investments though. They're counted seperately.