Alex is married, but for 2023, he will file separately from his wife. On February 1, 2023, he purchased 100 shares of QRS stock for $10,000. Shortly after he made the purchase, the price of the stock declined sharply. Concerned that his investment would continue to lose value, Alex decided to cut his losses, and he sold all his shares of QRS for $5,000 on March 27, 2023. Alex did not have any other capital gains or losses that year, and his only other income consisted of $72,000 in wages. Alex has not had good luck with his investments in recent years, and he also has a prior-year carryover loss of $2,000. What amount of capital loss can Alex use to offset his 2023 ordinary income? $1,500 $3,000 $5,000 $7,000

Alex is married, but for 2023, he will file separately from his wife. On February 1, 2023, he purchased 100 shares of QRS stock for $10,000. Shortly after he made the purchase, the price of the stock declined sharply. Concerned that his investment would continue to lose value, Alex decided to cut his losses, and he sold all his shares of QRS for $5,000 on March 27, 2023. Alex did not have any other capital gains or losses that year, and his only other income consisted of $72,000 in wages. Alex has not had good luck with his investments in recent years, and he also has a prior-year carryover loss of $2,000. What amount of capital loss can Alex use to offset his 2023 ordinary income? $1,500 $3,000 $5,000 $7,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 56P

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