1. In Year 7, a married individual taxpayer incurred net long-term capital losses that amounted to $10,000. The taxpayer had previously reported the following net long-term capital gains:

Year Net capital gain

5 $2,000

6 $2,000

7 $2,000

What amount of long-term capital loss will the taxpayer carry forward to Year 8?

1. $10,000

2. $7,000

3. $6,000

4. $3,000