Question

In the previous tax year, Albert had a long-term loss carryover of $4,500, he had a current year long-term gain of $1,480, and he claimed the maximum long-term loss allowed ($3,000) on Schedule D in the previous tax year. Albert had a $591 short-term loss in the current year. What is the amount of long-term gain or loss Albert will be able to claim on Schedule D this year after using the carryover loss from the previous year?

Answer 1

Answer: -$611

Step-by-step explanation:

Long term capital loss = -$1500

Add: Current Capital gain = $1480

Less: short term capital loss = -$591

Therefore, the amount of long-term loss that Albert will be able to claim on Schedule D this year after using the carryover loss from the previous year would be:

= -$1500 + $1480 - $591

= -$611