Intuit Academy Tax Practice Exam

The selection of the option indicating that they can deduct a capital loss of $3,000 aligns accurately with the tax treatment of capital losses. Specifically, in the U.S. tax system, individuals can offset capital gains with capital losses, and if their capital losses exceed their capital gains, they can use the losses to reduce their taxable income. For individuals, the IRS allows taxpayers to deduct up to $3,000 of net capital losses against other income, such as wages or salaries, on their tax return for the year. This is particularly pertinent if the losses exceed any capital gains realized during the same tax year. If Arti and Matt incurred capital losses greater than their capital gains, claiming the maximum $3,000 deduction would be a beneficial approach for minimizing their tax liability. In this context, the other options do not directly address the deductibility of their overall capital losses in the same straightforward manner. While carrying over amounts may apply in certain situations, the option stating a deduction of $3,000 is the most relevant and immediately beneficial for the current tax year. Thus, the answer effectively captures the tax advantage available to them based on their investment transactions.