DETERMINING NET CAPITAL GAIN OR LOSS (2 OF 2)
01.Core Concepts
• Capital losses can generally only offset capital gains. • May not be used as a deduction against other sources of income • Exceptions: • Up to $3,000 of net capital losses can offset other income. • Up to $50,000 (single; $100,000 MFJ) of losses on Section 1244 stock can offset other income.