An individual taxpayer with 2014 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2015.

Question

Quizplus · Accepted Answer

This is correct according to the IRS rules for deducting capital losses. The taxpayer can deduct up to $3,000 of their net short-term capital loss against ordinary income in 2014, and the remaining $2,000 can be carried over to the next tax year.

An Individual Taxpayer with 2014 Net Short-Term Capital Loss of $5,000