Question

A married couple has a net short-term capital loss of $2,000 and a net long-term capital loss of $3,000 for the year. If the couple has no other gains or losses, what, if anything, carries over to the next year?

Answer 1

$2,000 short-term capital loss; $3,000 long-term capital loss.

Step-by-step explanation:

There is no information about other income, such as wages. It other income is given in the question then these losses will reduce other income up to an annual limit of $3,000, or $1,500 if you are married filing separately.

The couples do not have any gains or losses (they break even), therefore the capital-losses carryover to the next year.