Chester provides you with the following income information for years 1 and 2, exclusive of capital loss carryovers:

SHORT-TERM SHORT-TERM LONG-TERM LONG-TERM CAPITAL GAIN CAPITAL LOSS CAPITAL GAIN CAPITAL LOSS Year 1 0 $2,400 $400 $3,500 Year 2 $500 $1,700 $900 $1,000 Year 3 $2,000 $400 $300 $500 Determine the amount and type of capital loss deduction each year, if any, and the carryover to the following year.

AppendixLO1