Paul Beyer, who is unmarried, has taxable income of
$30,000 exclusive of capital gains and losses and his personal
exemption. In 2012, Paul incurred a $1,000 net short-term capital
loss and a $5,000 net long-term capital loss. His capital loss
carryover to 2013 is

(c) The requirement is to determine the capital loss
carryover to 2013. The NSTCL and the NLTCL result in a net
capital loss of $6,000. LTCLs are deductible dollar for dollar, the
same as STCLs. Since an individual can deduct a net capital loss
up to a maximum of $3,000, the net capital loss of $6,000 results
in a capital loss deduction of $3,000 for 2012, and a long-term
capital loss carryover to 2013 of $3,000.