What amount of capital loss carryover does Jordan have to 2018?

To determine the amount of capital loss carryover that Jordan has to 2018, it's essential to understand how capital losses can be utilized under tax law. A capital loss occurs when a capital asset, such as stocks or bonds, is sold for less than its purchase price. Taxpayers can use capital losses to offset capital gains, and if the losses exceed the gains, they can deduct a limited amount against ordinary income.

In the case where Jordan has an excess of capital losses over capital gains, he can carry forward any unused losses to the following tax years. The annual limit for offsetting ordinary income with capital losses is $3,000 for individuals ($1,500 if married filing separately). Therefore, after offsetting any capital gains in a given year, if there is still a loss left over, that remaining amount can be carried forward.

Given that the answer states a capital loss carryover of $8,000 to 2018, this suggests that Jordan had a net capital loss that was effectively utilized in prior years. The $8,000 likely reflects the total loss amount after considering any gains Jordan might have had in previous years and any amounts previously deducted against ordinary income.

After the $3,000 allowable deduction against ordinary income