An individual taxpayer with 2013 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2014.

Question

Quizplus · Accepted Answer

This is correct according to the IRS guidelines. An individual taxpayer can deduct up to $3,000 of net short-term capital losses for AGI each year and carry forward any excess losses to future years.

An Individual Taxpayer with 2013 Net Short-Term Capital Loss of $5,000