Madison, a calendar year individual taxpayer, has the following results for her current taxable year: profit from operations of $200,000 and long-term capital loss from investments of $20,000.As to the capital loss, Madison may:

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Individual taxpayers can deduct up to $3,000 of net capital losses against other income per year and carry forward any unused losses indefinitely. These carried forward losses retain their character as long-term or short-term capital losses.

Madison, a Calendar Year Individual Taxpayer, Has the Following Results