Martha has a net capital loss of $20,000 and other ordinary taxable income of $48,000 for the current tax year. What is the amount of Martha's taxable income after deducting the allowed capital loss?

Question

Quizplus · Accepted Answer

Martha can deduct up to $3,000 of her net capital loss from her other ordinary taxable income, leaving her with a taxable income of $45,000 ($48,000 - $3,000).

Martha Has a Net Capital Loss of $20,000 and Other