How much of a net capital loss is deductible now, and what carries forward
One command on the Federal income tax server, callable over MCP as calculate_loss, filed in the registry as Capital loss. Every result carries the method it used, the rule pack it was pinned to, what is still missing and whether coverage was complete, for a licensed professional to review.
What it needs, and why
Every input is checked before anything is calculated. Nothing is required to start, and a field left blank means do not apply this rather than zero.
| Input | What it asks for | Why it matters | If you omit it |
|---|---|---|---|
loss | Net capital loss | Only part of a net capital loss is deductible in a year; this figure decides the split between now and the carryforward. | defaults to 12000 |
status | Filing status one of MFJ, SINGLE, HOH, MFS | Every band, threshold and exemption in the calculation is set by filing status. | defaults to MFJ |
Requests it answers
- “How much of a capital loss can I deduct this year?”
- “What happens to the rest of a capital loss?”
An agent with these skills loaded picks the command from phrasing like that, asks for whatever input is missing, and reports the figures with the method that produced them.
Run it
python3 -m taxagent federal loss --loss 12000 --status MFJThe same command is exposed by taxagent-federal, so Claude, Claude Code, Codex, Cursor and any other MCP client can call it directly. Analysis only. No tool in this server places orders, modifies custodian records or files returns. This server holds no client data: every figure arrives in the call and nothing is stored. Results are estimates over those figures, not a return and not tax advice.
Scripted cases that exercise it
1 of the 71 console cases call this command on a real server over JSON-RPC and assert the outcome. Every one runs on every build, and all of them are listed on the case inventory.
| Case | What it asks | What it shows | Outcome |
|---|---|---|---|
federal-loss-limit | $12,000 of losses, $3,000 deductible | The annual limit and what carries forward, rather than deducting the whole loss against ordinary income. | completed |
Limits it inherits from taxagent-federal
- A return. AMT and the section 199A deduction are computed separately and are not folded into one liability.
- Credits, self-employment tax and the additional Medicare tax.
- State and local tax.
The server, its other 6 commands and what it deliberately leaves alone are on the Federal income tax page.