An investor had $60,000 in losses and $20,000 in gains on her equity trades last year. What is TRUE regarding her taxes?

The statement that the investor will be permitted to deduct $3,000 of losses against her ordinary income is accurate due to the tax regulations surrounding capital gains and losses in the United States. Each investor is allowed to offset their capital gains with their capital losses to determine their net capital gain or loss. In this case, the investor has $20,000 in gains and $60,000 in losses, resulting in a net capital loss of $40,000.

However, tax law stipulates that an individual can only deduct up to $3,000 of net capital losses against their ordinary income in any given year. Any remaining losses beyond this limit can be carried forward to future years, which provides a benefit for offsetting taxes in subsequent years.

The other choices do not reflect the actual tax treatment: while losses can be carried forward, they cannot be fully deducted in the current year beyond the specified limit, and losses cannot generate a tax payment. Thus, the accurate detail about deducting a specified amount of losses against ordinary income truly represents the situation the investor is in.