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On October 23, 2020, Marielle sold shares of ABC stock that she had initially purchased on February 1, 2019. She had a capital gain of

On October 23, 2020, Marielle sold shares of ABC stock that she had initially purchased on February 1, 2019. She had a capital gain of $2,000 from the sale of this stock. The same day she sold the shares of ABC, she also sold shares of DEF stock that she had acquired on April 22, 2019. Unfortunately, DEF did not perform well, and Marielle incurred a $6,000 loss at the time of sale. Marielle does not have any other capital gains or losses, and her only other income for the year consisted of $55,000 in wages. She has no prior-year carry over losses, and she will use the single filing status when she files her 2020 return. How much of the loss will Marielle carryover to the next tax year?

$0

$1,000

$3,000

$4,000

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