Martha has a net capital loss of $20,000 and other ordinary taxable income of $45,000 for the current tax year. What is the amount of Martha's taxable income after deducting the allowed capital loss?

Question

Quizplus · Accepted Answer

Martha can deduct up to $3,000 of the net capital loss from her other ordinary taxable income. This means her taxable income is $45,000 - $3,000 = $42,000. Therefore, the correct answer is C.

Martha Has a Net Capital Loss of $20,000 and Other