Final answer:
The maximum capital loss an investor may write off against ordinary income in one tax year is limited to $3,000 for individuals and $1,500 for married couples filing separately.
Step-by-step explanation:
The maximum capital loss an investor may write off against ordinary income in one tax year is limited to $3,000 for individuals and $1,500 for married couples filing separately. Any capital losses in excess of these limits can be carried forward to future years to offset capital gains or reduce ordinary income.
For example, if an investor has a capital loss of $10,000 in a tax year, they can write off $3,000 against their ordinary income for that year, and carry forward the remaining $7,000 as a capital loss to offset future capital gains or reduce future ordinary income.