An individual taxpayer with 2009 net short-term capital loss of $5,000 generally can deduct up to $3,000 for AGI and carry the balance forward to 2010.

Question

Quizplus · Accepted Answer

This is true according to the IRS tax code. An individual taxpayer can deduct up to $3,000 of net capital losses against ordinary income in the current tax year, and carry over any remaining losses to future tax years.

An Individual Taxpayer with 2009 Net Short-Term Capital Loss of $5,000