Question
In the current tax year, YBZ Corporation had $2,000 net short-term capital gain and $11,000 net long-term capital loss. Three years ago (Year 1), YBZ
In the current tax year, YBZ Corporation had $2,000 net short-term capital gain and $11,000 net long-term capital loss.
Three years ago (Year 1), YBZ had $3,000 net capital gain.
Two years ago (Year 2), YBZ had $2,500 net capital gain.
One year ago (Year 3), YBZ had $1,500 net capital gain.
This is a three-part question.
Question 1: What amount, if any, of excess capital loss, is available for carryover to other tax years?
Question 2: What amount of the total income adjustment, if any, can YBZ apply for from capital loss carryback to prior tax years?
Question 3: What amount, if any, of capital loss, remains for carryover to the next tax year?
a) $11,000; $7,000; $4,000
b) $ 9,000; $7,000; $2,000
c) $ 6,000; $6,000; $ 0
d) $ 9,000; $4,500; $4,500
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