The Maximum Amount of Net Capital Losses Individuals May Deduct

question 79

Multiple Choice

The maximum amount of net capital losses individuals may deduct against their ordinary income per year is:

• A) $3,000
• B) $5,000
• C) Zero, losses are not deductible
• D) There is no maximum. All losses are allowed to be deducted.
• E) None of these

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Definitions:

Shortage/Surplus

Conditions where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus) in a market.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a specific price level.

Quantity Supplied

The volume of a good or service available for sale from suppliers at a certain cost.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from prices that are deemed too high.