(b) The requirement is to determine the correct treatment
for a capital loss incurred by a married couple filing a joint
return for 2011. Capital losses first offset capital gains, and then
are allowed as a deduction of up to $3,000 against ordinary income,
with any unused capital loss carried forward indefinitely.
Note that a married taxpayer filing separately can only offset up
to $1,500 of net capital loss against ordinary income.