This year, Jack O. Lantern incurred a $60,000 loss on the worthlessness of his s

Question

This year, Jack O. Lantern incurred a $60,000 loss on the worthlessness of his stock in the Creepy Corporation (CC). The stock, which Jack purchased in 2005, met all of the §1244 stock requirements at the time of issue. In December of this year, Jack’s wife, Jill, also incurred a $75,000 loss on the sale of Eerie Corporation (EC) stock that she purchased in July 2005 and which also satisfied all of the §1244 stock requirements at the time of issue. Both corporations are operating companies. Assume that they file a joint return.

Need Help with the red mark. I've inputted $100,000 and it's incorrect..Also inputted $35,000 and it's incorrect..

This year, Jack O. Lantern incurred a $60,000 loss on the worthlessness of his stock in the Creepy Corporation (CC). The stock, which Jack purchased in 2005, met all of the 51244 stock requirements at the time of issue. In December of this year, Jack's wife, Jill, also incurred a $75,000 loss on the sale of Eerie Corporation (EC) stock that she purchased in July 2005 and which also satisfied all of the 51244 stock requirements at the time of issue. Both corporations are operating companies. Assume that they file a joint return. a. How much of the losses incurred on the two stock sales can Jack and Jill deduct this year, assuming they do not have capital gains in the current or prior years? Answer is complete but not entirely Total deductible loss 100,000

Explanation / Answer

$100,000 can be claimed as ordinay loss and additional amount of $3000 can be claimed as capital loss. Thus total amount of deductible loss will be $103,000.

Balance amount of loss of $32,000 can be carried forwar to the next year.

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