Question

Mario a single taxpayer had a salary of $21,000 and $3000 of other ordinary income. He...

Mario a single taxpayer had a salary of $21,000 and $3000 of other ordinary income. He had a long term capital loss of 1400 and a short term capital gain of 1500. Capital losses from the previous years were as follow: Long term capital loss carryover(28% basket) =($2400) Short term capital loss carryover=($3200) After deducting all possible carryovers in the current year, what are Sylvia's carryovers to the following year? A. $1600 short term capital loss and $900 long term capital loss (28% basket). B.0$ short term capital loss and $2500 long term capital loss (15%) basket C. $2400 short term capital loss and $100 long term capital loss (15% basket) D.$100 short term capital loss and $2400 long term capital loss(28% basket). E. None of the above.

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Answer #1

Option B. is correct

STCG/ (STCL) (LTCL)
Current year              1,500        (1,400)
Carried to current year            (3,200)        (2,400)
Net position            (1,700)        (3,800)
Deduction taken              1,700          1,300
Carried over to next year                    -          (2,500)
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