In 2018, Paul, a single taxpayer, has taxable income of $30,000 exclusive of capital gains and losses.Paul incurred a $1,000 short-term capital loss and a $4,000 long-term capital loss.What is the amount of his long-term capital loss carryover to 2019?
A)$0
B)$2,000
C)$3,000
D)$5,000
E)None of the above

Question

Quizplus · Accepted Answer

Paul can deduct up to $3,000 of capital losses against his ordinary income. He has a total capital loss of $5,000 ($1,000 short-term + $4,000 long-term). After deducting $3,000, he has $2,000 remaining as a long-term capital loss carryover to 2019.

In 2018, Paul, a Single Taxpayer, Has Taxable Income of $30,000