In 2015,Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction.In 2016,Jenny has a $18,000 0%/15%/20% long-term capital gain and no other capital gain or loss transactions.Which of the statements below is correct for 2016?

Question

Quizplus · Accepted Answer

Jenny can use her $12,000 net short-term capital loss from 2015 to offset her $18,000 long-term capital gain in 2016. This leaves her with a net long-term capital gain of $6,000. She cannot use any of her capital loss deduction from 2015 since she has a net capital gain in 2016. Therefore, her net capital gain for 2016 is $6,000 or $9,000 if she chooses to apply her remaining capital loss deduction from 2015. So, the correct option is B.

In 2015,Jenny Had a $12,000 Net Short-Term Capital Loss and Deducted