Question

Tatoo Inc. reported a net capital loss of $13,500 in 2018. The company had a net capital gain of $4,800 in 2016 and $3,500 in 2015. In 2017, although the company suffered a net operating loss, it had net capital gains of $1,500. What is the amount of Tatoo's capital loss carryover remaining after it applies the carryback?

Answer 1

The amount of Tatoo's capital loss carryover remaining after it applies the carryback is $ 5200.

Step-by-step explanation:

The net capital loss will be set off as :

2016 : $ 4800

2017 : $ 3500

Net carryback = $ 13500 - $ 4800 - $ 3500

= $ 5200

Therefore, the amount of Tatoo's capital loss carryover remaining after it applies the carryback is $ 5200.