In 2016,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

According to IRS rules, individuals can deduct up to $3,000 in net capital losses each year. Mark has a net capital loss of $18,000 - $7,000 + $6,000 = $17,000. Since $17,000 is greater than the maximum deduction of $3,000, Mark can deduct only $3,000 of that loss in the current year. The remaining $14,000 of the loss can be carried forward to future years. Therefore, Mark has a $3,000 capital loss deduction.

In 2016,Mark Has $18,000 Short-Term Capital Loss,$7,000 28% Gain,and $6,000