In 2016, Paul, a single taxpayer, has taxable income of $30,000 exclusive of capital gains and losses. Paul incurred a $1,000 short-term capital loss and a $4,000 long-term capital loss. What is the amount of his long-term capital loss carryover to 2017?

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Paul can offset $3,000 of his capital losses against his ordinary income in 2016. He has a total capital loss of $5,000 ($1,000 short-term + $4,000 long-term). After offsetting $3,000 against his ordinary income, he has $2,000 of long-term capital loss remaining to carry over to 2017.

In 2016, Paul, a Single Taxpayer, Has Taxable Income of $30,000