Stella has two transactions involving the sale of capital assets during the year resulting in a STCL of $5,200 and LTCL of $2,400.As a result,Stella can offset

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Stella can offset $3,000 of ordinary income with her STCL and her remaining STCL of $2,200 can be carried forward to future years. She can also offset her LTCL of $2,400 against any future long-term capital gains. Therefore, Stella can have a STCL carryforward of $2,200 and a LTCL carryforward of $2,400.

Stella Has Two Transactions Involving the Sale of Capital Assets