Question

Shannon, a single taxpayer, has a long-term capital loss of $7,000 on the sale of bonds in 2018 and no other capital gains or losses. Her taxable income without this transaction is $47,000. What is her taxable income considering this capital loss?

Answer 1

taxable income consider capital loss is $44000

Step-by-step explanation:

given data

capital loss = $7000

net income = $47000

to find out

taxable income consider capital loss

solution

we know here that in account maximum of $3000 loss deducted by taxable income so

here

taxable income consider capital loss = net income - max loss deduction

put here value

taxable income consider capital loss = 47000 - 3000

taxable income consider capital loss = 44000

so taxable income consider capital loss is $44000