Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

In order to determine the long-term capital loss carryover, we need to analyze how capital gains and losses interact for tax purposes. Sally has a long-term capital loss of $6,500 and a short-term capital gain of $1,000.

First, the short-term capital gain will offset any short-term capital losses Sally may have. However, because there are no short-term capital losses reported, the next step is to offset the short-term capital gain with the long-term capital loss. This means we can subtract the short-term capital gain from the long-term capital loss.

Calculating this gives us:

Long-term capital loss: $6,500

Subtracting the short-term capital gain: $1,000

Resulting long-term capital loss available for offsetting other capital gains: $6,500 - $1,000 = $5,500

This $5,500 long-term capital loss can be carried forward to the next tax year.

However, for the current year, the IRS allows taxpayers to use $3,000 of total net capital losses ($1,500 if married filing separately) to offset income. Since Sally has a net capital loss of $5,500 after considering the short-term gain, she can