Alexis has a long-term capital loss of $13,000 on the sale of stock in 2015. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her 2015 taxable income considering this capital loss?

Question

Quizplus · Accepted Answer

The IRS allows taxpayers to deduct up to $3,000 of capital losses against ordinary income each year. Therefore, Alexis can deduct $3,000 from her $60,000 taxable income, resulting in a taxable income of $57,000 for 2015. The remaining $10,000 of capital loss can be carried forward to future years.

Alexis Has a Long-Term Capital Loss of $13,000 on the Sale