In the current year, Norris, an individual, has $50,000 of ordinary income, a Net Short Term 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:

Question

Quizplus · Accepted Answer

$2,800 NLTCG - $10,000 NSTCL = $7,200 NSTCL; Use $3,000 NSTCL to reduce ordinary income leaving $4,200 as a NSTCL carryforward.

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