In the current year, Norris, an individual, has $50,000 of ordinary income, a Net ShortTerm Capital Loss (NSTCL) of $10,000 and a Net Long Term Capital Gain (NLTCG) of$2,800. From his capital gains and losses, Norris reports:
A) an offset against ordinary income of $10,000.
B) an offset against ordinary income of $3,000 and a NSTCL carryforward of $7,200.
C) an offset against ordinary income of $3,000 and a NSTCL carryforward of $4,200.
D) an offset against ordinary income of $2,800 and a NSTCL carryforward of $7,200.
E) an offset against ordinary income of $3,000 and a NSTCL carryforward of $7,000.

Question

Quizplus · Accepted Answer

Norris can offset $3,000 of his NSTCL against his ordinary income, and the remaining $7,000 NSTCL is reduced by the $2,800 NLTCG, leaving a $4,200 NSTCL carryforward.

In the Current Year, Norris, an Individual, Has $50,000 of Ordinary