C had a long-term capital loss carryover to the current year of $4,000.For the current year, she had a short-term capital loss of $2,000 and a long-term capital gain of $1,000.What is C's capital loss deduction for the current year and her carryover to the next year?

Question

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C can use the $4,000 long-term loss carryover plus the $2,000 short-term loss from the current year to offset the $1,000 long-term gain, resulting in a $5,000 net loss. She can deduct $3,000 this year, leaving a $2,000 long-term loss carryover to the next year.

C Had a Long-Term Capital Loss Carryover to the Current