If an Indivdual Taxpayer's Net Long-Term Capital Losses Exceed the Net

question 67

True/False

If an indivdual taxpayer's net long-term capital losses exceed the net short-term capital gains,the excess may be offset against ordinary income up to $3,000 per year.Any excess losses over $3,000 may be carried back three years and carried forward five years.

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Definitions:

Marginal Propensity

Marginal propensity, in economics, refers to the fraction of an increase in income that is spent on consumption. It represents the change in consumption resulting from a change in income.

Government Spending

This refers to the total expenditure by government agencies on goods, services, and public works.

Demand for Goods

The desire, willingness, and ability of consumers to purchase goods at a given price over a specific time period.

Unemployment Insurance

A government program that partially protects workers’ incomes when they become unemployed.