Calculation of Gain or Loss and Net Capital Losses (LO 4.4, 4.5)

In 2021, Michael has net short-term capital losses of $1,700, a net long-term capital loss of $17,000, and other ordinary taxable income of $45,000.

If an amount is zero, enter "0".

Question Content Area

a. Calculate the amount of Michael's deduction for capital losses on his tax return for 2021.

b. Calculate the amount and nature of his capital loss carryforward.

? Long-term capital loss carryforward ? Short-term capital loss carryforward

c. For how long may Michael carry forward any long-term unused loss?