In 2010,Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction.In 2011,Jenny has a $16,000 0%/15% long-term capital gain and no other capital gain or loss transactions.Which of the statements below is correct?

Question

Quizplus · Accepted Answer

First, we need to carry forward the remaining $9,000 ($12,000 – $3,000) of the 2010 net short-term capital loss to 2011. 
Then, we can offset the $16,000 long-term capital gain with the $9,000 short-term capital loss carried forward, resulting in a net capital gain of $7,000 for 2011. Therefore, choice B is correct. 
Choices A, C, D, and E are incorrect because they do not reflect the correct calculation of the net capital gain or loss for 2011.

In 2010,Jenny Had a $12,000 Net Short-Term Capital Loss and Deducted