Question

Paige, a single taxpayer, sold some stocks – Net Gain/Loss is shown below.

Net Gain/Loss

$3,276

($2,088)

$24,019

($6,997)

Paige also has a capital loss carryover from the prior year of $23,593. What is the amount of gain or loss to be reported on her return for this year?

a) ($3000)
b) $0
c) $18,260
d) ($5333)

Also, based on the information provided above and the information that Paige has a capital loss carryover from the prior year of $23,593, what amount (if any) of capital loss carryover will Paige have for next year?

a) $10,593
b) $0
c) $23,593
d) $2,333

Answer 1

1) Given Paige Stock Gains = $3276 + $24,019 = $27,295

Stock Loss = $2,088 + $6,997 = $9085

Total Net Gain for the year = $27,295 - $9085 = $18,210

Paige has the cpital loss carrover from prior year $23,593 which can be deducted from the current year Capital gains $18,210

Net Loss to be reported is $23,593 - $18,210 = $5383

According to IRS the Capital losses can be deducted from the similar type of capital gains can be deducted upto $3000 from other sources of income.

Hence the net loss to be reported for the year is liited to $3000.

2) The Capital loss to be carried forward for the next year is the remaing capital loss left over after filing the return for current year i.e, $5383 - $3000 = $2383