An individual taxpayer with 2016 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2017.

Name: An individual taxpayer with 2016 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2017.
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This is correct according to the IRS rules. The taxpayer can deduct up to $3,000 of the net short-term capital loss for AGI in 2016 and carry forward any remaining amount to future years.

An Individual Taxpayer with 2016 Net Short-Term Capital Loss of $5,000