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Business, 06.05.2020 03:14 myparentsrock17

Bob sold securities in Year 1. The sales resulted in a capital loss of $7,000. He had no other capital transactions. He and his wife Gloria decide to file separate returns for Year 1. His taxable income was $26,000.
What amount of capital loss can he deduct on his Year 1 return and what amount can he carry over to Year 2?

A. $7,000 in Year 1 and $0 carry over to Year 2.
B. $3,000 in Year 1 and $4,000 carry over to Year 2.
C. $4,000 in Year 1 and $3,000 carry over to Year 2.
D. $1,500 in Year 1 and $5,500 carry over to Year 2

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Bob sold securities in Year 1. The sales resulted in a capital loss of $7,000. He had no other capit...
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