He can't write this year's losses off of last year's taxes. And unless he makes enough trades to be considered a day trader, he is an investor - with a 3000/year cap on capital losses, with any extra rolling over to the following year.
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So he has a tax credit for the $80,000 for any potential gains in the future?
That he can claim something like a max of 3k a year from, unless he's a day trader (5-7 trades a week is not sufficient to be considered a day trader by the IRS).
@ashaman True. He cannot write off the bill. It's burdening though.