For 2016, Sherri has a short-term loss of $2,500 and a long-term loss of

$4,750.

a) How much loss can Sherri deduct in 2016?

b) How much loss will Sherri carryover to 2017, and what is the character of the loss carryover?

50. Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000.

On December 30 of year 4, Adrian sells the 100 shares for $6,000.

a) Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?

b) Assume the same facts as in part (a), except that on January 20 of year 5, Adrian purchases 100 shares of X Corp. stock for $6,000. How much loss from the sale on December 30 of year 4 is deductible on Adrian’s year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5?