During the Current Year, Nancy Had the Following Transactions What Is the Amount of Her Capital Loss Deduction for

question 119

Multiple Choice

During the current year, Nancy had the following transactions: $$\begin{array} { | l | r | } \hline \text { Short-term capital loss } & ( \$ 1,800 ) \\\hline \text { Short-term capital gain } & 3,600 \\\hline \text { Short-term capital loss carryover from last year } & ( 2,200 ) \\\hline \text { Long-term capital gain } & 7,000 \\\hline \text { Long-term capital loss } & ( 15,000 ) \\\hline\end{array}$$ What is the amount of her capital loss deduction for the current year, and what is the amount and character of her capital loss carryover?

• A) \[\begin{array} { | l | l | }
• \hline \text { Deduction } & \text { Carryover } \\
• \hline \$ 4,000 & \$ 400 \text { short-term and } \$ 5,000 \text { long-term } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Deduction } & \text { Carryover } \\
• \hline \$ 3,000 & \$ 5,400 \text { LTCL carryover } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Deduction } & \text { Carryover } \\
• \hline \$ 3,000 & \$ 5,000 \text { long-term } \\
• \hline
• \end{array}\]
• D) \(\begin{array}{|l|l|}
• \hline\text { Deduction } & \text { Carryover } \\
• \hline\$ 12,100 & \$ 0 \\
• \hline
• \end{array}\)

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