Long-term, ordinary gain of $30,000. Long-term, capital gain of $30,000. O Short

Question

Long-term, ordinary gain of $30,000. Long-term, capital gain of $30,000. O Short-term, ordinary gain of $30,000. O Short-term, capital gain of $30,000. Mark for follow up Question 33 of 75 In 2016, Jordan had taxable income of $100,000. This amount included short-term capital losses of $1,000 and long-term capital losses of $10,000. He had no other capital transactions in prior years. What is Jordan's capital loss carryover to 2017? $1,000 O $8,000 o $11,000 Mark for follow up Question 34 of 75. Mike purchased 200 shares of XYZ stock f $1,000 return of capital in 2015 and a $1,000 return of capital in 2016. What should be reported on his 2016 tax 0 in 2014. XYZ ha

Explanation / Answer

As per IRS rules , individuals can offset upto $3000 of capital losses in a year from ordinary income.

As such the ordinary income in this case is $100,000 and the total captial loss is $11,000 ( $10,000 + $1000) .

Out of the $11,000 , $3000 can be offest against ordinary income of $100,000.

Therefore carryover capital losses = $11,000 - $3000 = $8000

The answer is c , $8000.

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