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Patrick and Natalie Simmons sold stock that resulted in a short term capital loss of $5,000....

Patrick and Natalie Simmons sold stock that resulted in a short term capital loss of $5,000. They had no other capital transactions during the year. Their taxable income was $10,000. How much of the capital loss is deductible on their joint return and how much must be carried over to the next year?

A. $0 loss; $5000 carryover
B. $1,500 loss; $1,500 carryover
C. $3,000 loss; $0 carryover
D. $3,000 loss; $2,000 carryover

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Expert Solution

d)3000 loss,2000carryover

IN here company a taxable income of 10000 and a capital loss of 5000.The company can deduct full 5000 against the capital gain if it is present but in here capital gain  is not present and only amount 3000 can deduct against another income.so this company can deduct 3000 this year and remaining 2000 capital loss can carryover and it can net of against future income

ekkarill92 answered 2 years ago
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