Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000,a STCL of $12,000,a LTCG of $1,800 and a LTCL of $1,000.As a result of these transactions,Joel will

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Joel can use up to $3,000 of his net capital losses to reduce his ordinary income. In this case, his net capital losses are ($12,000 + $1,000) - ($5,000 + $1,800) = $6,200. Therefore, he can deduct $3,000 of the losses against his ordinary income and carry forward the remaining $3,200 of STCL to be used in future tax years.

Joel Has Four Transactions Involving the Sale of Capital Assets