Question

The maximum amount of net capital losses individuals may deduct against their ordinary income per year is:

A. $3,000
B. $5,000
C. Zero, losses are not deductible
D. There is no maximum. All losses are allowed to be deducted.
E. None of these

Answer 1

The maximum amount of net capital losses individuals may deduct against their ordinary income per year is $3,000.

Step-by-step explanation:

The maximum amount of net capital losses individuals may deduct against their ordinary income per year is $3,000 (option A). This means that individuals can deduct up to $3,000 of their capital losses against their ordinary income on their tax returns.