Martha has a net capital loss of $17,000 and other ordinary taxable income of $45,000 for the current year.What is the amount of Martha's capital loss carryforward?
A)$0
B)$10,000
C)$14,000
D)$17,000
E)None of the above

Question

Quizplus · Accepted Answer

Martha can deduct up to $3,000 of her capital loss against her other ordinary income for the current tax year, leaving her with a remaining net capital loss of $14,000. This remaining loss can be carried forward to future tax years indefinitely until it is fully used up. Therefore, the amount of Martha's capital loss carryforward is $14,000.

Martha Has a Net Capital Loss of $17,000 and Other