Question

How might the current treatment of capital losses discourage an individual investor from purchasing stock of a high-risk, start-up company?

Answer 1

Answer:

On the off chance that an individual taxpayer has capital gains, at that point the deductible sum is topped by $3,000 every year. On the off chance that a investor endures a moderately huge capital loss, at that point it will take several years to deduct the entirety of the losses. All things considered, an individual citizen or individual taxpayer can't deduct the entirety of the losses during his whole life. Along these lines, the present treatment of capital losses may demoralize an individual investor from purchasing stock of a high-risk, start-up company.