Question

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.

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)