A hospitalist earning $310,000 in W-2 wages harvests losses during a market decline and finishes 2026 with a $40,000 net capital loss after offsetting all of her realized capital gains. She is married filing jointly with no other investment income. How much of the remaining loss can reduce her ordinary income on her 2026 return?

Question

Accepted Answer

$3,000

Answer

$0 — capital losses can offset only capital gains, never wages

Answer

$1,500

Answer

$6,000 — $3,000 per spouse on a joint return

Answer

$40,000 — net capital losses are fully deductible in the year realized

Wealth Building: a board-style money question for physicians

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