In 2015,Mark has $18,000 short-term capital loss,$7,000 28% gain,and $6,000 0%/15%/20% gain.Which of the statements below is correct?

Question

Quizplus · Accepted Answer

Individual taxpayers are allowed to deduct up to $3,000 of excess capital losses against ordinary income each year. In this case, Mark has a net capital loss of $18,000 - $7,000 + $6,000 = $17,000. Since the maximum deduction allowed is $3,000, Mark can deduct $3,000 of this loss against ordinary income in 2015, leaving a carryover of $14,000 to future tax years. Therefore, choice B is correct.

In 2015,Mark Has $18,000 Short-Term Capital Loss,$7,000 28% Gain,and $6,000