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) \(\begin{array}{|l|l|}
• \hline\text { Deduction } & \text { Carryover } \\
• \hline\$ 12,100 & \$ 0 \\
• \hline
• \end{array}\)

---

Definitions:

Survivor Benefits

Financial benefits that are paid to the dependents or beneficiaries of a deceased individual, often as part of a pension or insurance plan.

Employer Contributions

Monetary amounts contributed by employers towards employee benefits like pension plans, health insurance, and other welfare schemes.

Employment Insurance

A government program designed to provide financial assistance to individuals who are unemployed through no fault of their own.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.