Matthew sold 200 shares of Xerox stock on December 23, 2017.The stock had a basis of $4,000 and was sold for $2,000, resulting in a $2,000 loss realized.In January of this year, Matthew caused his IRA to purchase 400 shares of Xerox stock for $4,000.In addition to the loss from the transaction described,in 2017Matthew had $8,000 of capital gains from other transactions.

May Matthew deduct the $2,000 capital loss on the sale of his Xerox stock on his 2017 tax return?What is (are) the Code section(s) at issue? Are any Treasury Regulations relevant?