In 2019, Paul, a single taxpayer, has taxable income of $30,000 exclusive of capital gains and losses. Paul incurred a $1,000 short-term capital loss and a $4,000 long-term capital loss. What is the amount of his long-term capital loss carryover to 2020?

=$2,000 ($1,000 + $4,000 - $3,000)

Explanation:

Capital loss carryover is the amount of net capital losses eligible to be carried forward into future tax years.

Net capital losses = Total capital losses - Total capital gains

Net capital losses can only be deducted against ordinary taxable income up to a maximum of $3,000 in any one tax year.

Net capital losses exceeding the $3,000 threshold can be carried forward to future tax years until exhausted.

There is no limit to the number of years a capital loss can be carried over.  

competition

elastic

Explanation:

Scientists have created a grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to buy it. As a result, several different producers supply a large amount of this seed to sell to consumers. To attract consumers, some producers lower their prices and supply fewer bags of seeds.

Use the drop-down menu to complete each statement.

In the scenario to the left, competition is the main factor affecting the price of the seeds.

This specific grass seed is a good with an elastic supply.