In 2007, a business sells a capital asset, which it had held for two years, at a loss of $15,000. How much of the capital loss may be deducted in 2007, and how much is carried back or forward under the following circumstances?

a) The business was a sole proprietorship owned by Joe. Joe had a short-term capital gain of $3,000 in 2007 and a long-term capital gaine of $2,000. Joe had ordinary net income from the proprietorship of $60,000.

b) The business is incorporated. The corporation had a short-term capital gain of $3,000 and a long-term capital gain of $2,000. Its ordinary net income from the business was $60,000.

This looks remarkably like a college-level business course assignment.

For this reason, I will pass on answering because I do NOT believe in giving students answers to questions they should be studying to answer themselves.