Problem:
For 2013, Sherri has a short-term loss of $2,890 and a long-term loss of $6,300.
Task:
Question 1: How much loss can Sherri deduct in 2013?
Question 2: How much loss wills Sherri carryover to 2014, and what is the character of the loss carryover?
Note: Provide support for your rationale.