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Sphinxa [80]
3 years ago
8

a customer has $12,000 of capital losses and $4,000 of capital gains in a tax year. On that year's tax return, the investor has

a: A $3,000 capital loss deduction with no loss carryforward B $3,000 capital loss deduction and a $5,000 loss carryforward C $8,000 capital loss deduction with no loss carryforward D $12,000 capital loss deduction
Business
1 answer:
Oksi-84 [34.3K]3 years ago
8 0

Answer:

B $3,000 capital loss deduction and a $5,000 loss carryforward

Explanation:

The computation is shown below:

The Net capital loss is

= $12,000 - $4,000

= $8,000

There is the maximum deduction with respect to the net capital loss arise from the other sources i.e. $3,000

So,  

Loss carry forward is

= $8,000 - $3,000

= $5,000

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