Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her current year taxable income considering this capital loss?

Question

Quizplus · Accepted Answer

Alexis can deduct up to $3,000 of her capital loss against her ordinary income. Therefore, her taxable income will be $60,000 - $3,000 = $57,000. The remaining $10,000 of the capital loss can be carried forward to future years.

Alexis Has a Long-Term Capital Loss of $13,000 on the Sale