An individual taxpayer with 2012 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2013.

Question

Quizplus · Accepted Answer

This is correct according to the IRS rules. The taxpayer can deduct up to $3,000 of net short-term capital losses for AGI in the current year and carry the excess over to future years, subject to limitations.

An Individual Taxpayer with 2012 Net Short-Term Capital Loss of $5,000