In 2017, Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction. In 2018, Jenny has a $18,000 0%/15%/20% long-term capital gain and no other capital gain or loss transactions. Which of the statements below is correct for 2018?
A) Jenny has a $18,000 net capital gain.
B) Jenny has a $9,000 net capital gain.
C) Jenny has a $9,000 net capital loss.
D) Jenny has a $3,000 capital loss deduction.
E) Jenny has a $9,000 capital loss deduction.

Question

Quizplus · Accepted Answer

Jenny can carry forward the remaining $9,000 short-term capital loss from 2017 to offset her 2018 long-term capital gain, resulting in a $9,000 net capital gain for 2018.

In 2017, Jenny Had a $12,000 Net Short-Term Capital Loss