Question

David files a return as married filing jointly. In 2020, he had the following items:

•Salary of $106,000.
•Loss of $107,000 on the sale of § 1244 stock acquired two years ago.
•Interest income of $6,000.
David's capital loss carryforward is:_____

Answer 1

David's capital loss carryforward is $1,000. He can carry forward this loss to offset future capital gains.

Step-by-step explanation:

David's capital loss carryforward is $1,000 ($107,000 - $106,000). This means that he can carry forward the remaining $1,000 loss to future tax years to offset any capital gains he may have in those years.