Bob has capital losses of $4,000 that exceed his capital gains in the current year. Of this amount, $1,200 is a short-term capital loss and $2,800 capital loss. The capital loss carryforward will be a $1,000 O long-term capital loss because Bob must first use the short-term loss to offset ordinary Income O capital loss pro-rated between short-term ($300) and long-term ($700) O short-term capital loss because Bob must first use the long-term loss to offset ordinary income O capital loss carryforward and Bob can choose how much of the gain to allocate to short-term versus long-term

Bob has capital losses of $4,000 that exceed his capital gains in the current yeat. Or this amount, $1.200 is a short term eapital loss and $2 go0 capital ioss. The capital loss carryforward will be a $1,000 Iong term capital loss because Bob must first use the short term loss to offset ordinary income capital loss pro-rated between short term (\$300) and long term (\$700) short term capital loss because Bob must first use the long term loss to offset ordinary income capital loss carryforward and Bob can choose how much of the gain to allocate to short term versus iong torin