Seamus had $16,000 of net short-term capital loss in 2010.In 2011,Seamus has $15,000 of long-term capital loss and $26,000 of long-term capital gain.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Seamus can use up to $3,000 of the net short-term capital loss to offset ordinary income for 2010, leaving him with a carryover of $13,000. 
In 2011, he will use the $15,000 long-term capital loss to offset the $26,000 long-term capital gain, resulting in a net long-term capital gain of $11,000. 
The remaining $13,000 of short-term capital loss carryover can be used to offset any future capital gains or up to $3,000 of ordinary income in future years. 
Thus, his net short-term capital loss for 2011 is $0, but he still has a $13,000 short-term capital loss carryover.

Seamus Had $16,000 of Net Short-Term Capital Loss in 2010