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Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December...

Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.) a. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?

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Expert Solution

Adrian long term capital loss = Sale value - Purchase value

= $6,000 - $10,000

= -$4,000

Adrian can offset $3,000 of the capital loss against ordinary income during the current year assuming Adrian has no other capital gains or losses.The remaining capital loss of $1,000 is carried forward indefinitely.

Therefore Adrian can claim deduction of $3,000.

Note:

long term capital loss of 4,000.in that we can set off 3,000 and remaining $1,000.

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ekkarill92 answered 2 years ago
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