In 2011,the first year of its existence,Chartreuse Corporation had a net capital loss of $3,000.In 2012 and 2013,it had net capital gains of $5,000 and $8,000,respectively.In 2014,the company reported a net capital loss of $12,000.What is the amount of capital loss carryforward to 2015?

Question

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In 2011, the net capital loss was $3,000. In 2012 and 2013, the net capital gains were $5,000 and $8,000 respectively. Since the net capital gains can only offset net capital losses, the $3,000 loss in 2011 can be offset by the $5,000 gain in 2012, leaving a net capital gain of $2,000. The remaining $2,000 gain in 2013 can be used to offset the $12,000 loss in 2014, leaving a net capital loss of $10,000 for that year. Therefore, the capital loss carryforward to 2015 is ($2,000), which represents the unused portion of the 2013 net capital gain that could not be fully used to offset the 2014 net capital loss.

In 2011,the First Year of Its Existence,Chartreuse Corporation Had a Net