The IRS allows individuals to deduct up to $3,000 of net capital losses against ordinary income each year. The calculation for the deductible loss in 2022 is as follows: Net capital loss: Short-term loss Long-term loss = -$2,810 -$2,160 = -$4,970 Deductible loss limit: $3,000 Since the net capital loss exceeds the deductible limit, Rosalva can deduct $3,000 in 2022