In 2013,Mark has $18,000 short-term capital loss,$7,000 28% gain,and $6,000 0%/15%/20% gain.Which of the statements below is correct?

Question

Quizplus · Accepted Answer

Short-term capital losses can offset short-term capital gains and then up to $3,000 of ordinary income. In this case, Mark has no short-term capital gains to offset, so he can use his $18,000 short-term capital loss to offset $7,000 of his 28% gain (leaving $11,000 of gain at this rate) and $6,000 of his 0%/15%/20% gain (leaving $0 of gain at these rates).

Therefore, Mark has a total net gain of $11,000 and can use up to $3,000 of his remaining capital loss to offset any remaining ordinary income (not mentioned). The remaining $15,000 of capital loss carries forward to future years.

Thus, choice B is correct: Mark has a $3,000 capital loss deduction.

In 2013,Mark Has $18,000 Short-Term Capital Loss,$7,000 28% Gain,and $6,000