Thie year, Jack O$.$ Laterna incurreed a $72500$ loss on the worthlessness of his stock in the Creepy Corporation. The stock, which jack purchased in $2005$ met all of the $1244$ stock requirements at the time of issue. In December of this year, Jack wife, Jill also incurred a $75,700$ loss on the sale of Eerie Corporation stock that she purchased in July $2005.$ Jills purchase also satisfied all the $1244$ stock requirements at the time of issue. Both corporations are operating companies. Assume that they file a joint return. What would be the tax treatment for the losses if jack and jill reported only $79500$ of taxable income this year, excluding the securities transactions?