I have a specific example I have a question on. In theory, a stock should trade down by the amount of its dividend on it's ex-dividend date, ceteris paribus. Of course that doesn't always happen, but let's assume that's the case for this question.
Let's say I buy a stock the day before the ex-dividend date at let's say $50/share and sell it the next day on the ex-dividend date at $45/share, and the dividend is $5/share. For tax purposes, I now have a $5 dividend gain, and a $5 short term capital loss, right? I know in general, capital losses only offset against other income up to $3000, but it seems strange that just because a company issues you a dividend, you're immediately at a disadvantage.
Let's say I buy a stock the day before the ex-dividend date at let's say $50/share and sell it the next day on the ex-dividend date at $45/share, and the dividend is $5/share. For tax purposes, I now have a $5 dividend gain, and a $5 short term capital loss, right? I know in general, capital losses only offset against other income up to $3000, but it seems strange that just because a company issues you a dividend, you're immediately at a disadvantage.