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

question 51

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) \[\begin{array} { | l | l | }
• \hline \text { Deduction } & \text { Carryover } \\
• \hline \$ 4,000 & \$ 400 \text { short-term and } \$ 5,000 \text { long- } \\
• &\text { term }\\\hline
• \end{array}\]
• 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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