Can I deduct a Long Term Capital Loss from my Income Taxes?
I prepare my own taxes and I use TurboTax. I do not itemize my deductions, taking the standard deduction is more advantageous for me. When I first started investing I purchased Invesco Large Cap Value mutual fund and Janus 20 mutual fund. I have held onto these funds for years. Overall, they have not performed well. If I sell the Invesco mutual fund shares this year, I will have a long term capital loss. I paid about $8,000 for them and they are only currently worth $5,000. If I sell them this year, can I still deduct this loss as a long term capital loss on my income taxes for 2011 even though I do not itemize my deductions?
In the past, I have only purchased additional shares of mutual funds, I have not sold a part, or all, of a mutual fund holding so I am not sure how I address the tax part of the transaction. I have only received 1099-DIVs in the past. Thank you for your advice.