During the current year,Nancy had the following transactions: What is the amount of her capital loss deduction for the current year,and what is the amount and character of her capital loss carryover?

Question

During the current year,Nancy had the following transactions:  What is the amount of her capital loss deduction for the current year,and what is the amount and character of her capital loss carryover?

Quizplus · Accepted Answer

The current year's net capital loss is $7,000 ([$12,000 (sale of stock) - $17,000 (cost basis)]). Since Nancy has no capital gains for the current year, her maximum capital loss deduction is $3,000. The remaining $4,000 loss can be carried over to future years, and it will be a short-term capital loss.

During the Current Year,Nancy Had the Following Transactions: What