Question

For 2019, Ashley has gross income of $38,350 and a $5,000 long-term capital loss. She claims the standard deduction of $18,350 and is eligible for head of household filing status. Ashley is 35 years old and unmarried with two dependent children. How much of Ashley’s $5,000 capital loss carries over to 2020?

Answer 1

carryover to 2020 = $2000

Step-by-step explanation:

given data

gross income = $38,350

long-term capital loss = $5,000

standard deduction = $18,350

age = 35 years old

dependent = 2 children

to find out

How much of Ashley $5,000 capital loss carries over to 2020

solution

we know that here for the individual maximum capital loss deduction is

maximum capital loss deduction = $3000 for household

so that carryover to 2020 will be here

carryover to 2020 = 5000 - 3000 = $2000