An individual taxpayer with 2019 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2020.

Question

Quizplus · Accepted Answer

This is true according to the IRS rules for capital losses. An individual can deduct up to $3,000 of net capital losses against ordinary income for the tax year, and any excess can be carried forward to future tax years.

An Individual Taxpayer with 2019 Net Short-Term Capital Loss of $5,000