An individual taxpayer with 2015 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2016.

Question

Quizplus · Accepted Answer

This is correct. An individual taxpayer can deduct up to $3,000 of net short-term capital losses against their AGI in the year they incur the losses. Any excess amount can be carried forward to future tax years.

An Individual Taxpayer with 2015 Net Short-Term Capital Loss of $5,000