In 2016, Bertha Jarow (head of household with three dependents) had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two month for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions.

Long-term capital loss ($6,000)

Long-term capital loss carryover from 2015 (12,000)

Short-term capital gain 21,000

Short-term capital loss (7,000)

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