One important tax rule concerning capital losses is that
A) capital losses are always fully deductible.
B) a maximum of $3,000 of losses in excess of capital gains can be written off against ordinary income in any one year.
C) a maximum of $10,000 of losses in excess of capital gains can be written off against other income in any one year.
D) capital losses are never deductible.

Question

Quizplus · Accepted Answer

The IRS allows individuals to deduct up to $3,000 ($1,500 if married filing separately) of net capital losses (the amount by which your total capital losses exceed your total capital gains) against ordinary income per year. Any amount exceeding this limit can be carried forward to future years.

One Important Tax Rule Concerning Capital Losses Is That