Lee qualified as head of a household for 2019 tax purposes. Lee’s 2019 taxable income was $100,000, exclusive of capital gains and losses. Lee had a net long-term capital loss of $8,000 in 2019. What amount of this capital loss can Lee offset against 2019 ordinary income?

Respuesta :

Answer:

$3,000

Explanation:

The IRS allows a head of household or joint filers to deduct from their gross income up to $3,000 as net capital losses in one year. If there exists any remaining amount it should be treated as long-term capital loss carryover for next year's taxes.

In this case Lee will be able to deduct $3,000 this year and the remaining $5,000 will remain as long-term capital loss carryover for 2020.

Answer:

ppp

Explanation:

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