During 2012, Hattie Hanover recognizes a $11,000 short-term capital loss, a $5,000 long-term capital loss and a $6,000 short-term capital gain. Prior to considering these capital gains and losses, Hattie's adjusted gross income equals $50,000. After taking its capital gains and losses into consideration, her income equals:

Question

Quizplus · Accepted Answer

Hattie has a net short-term capital loss of $5,000 and a net long-term capital loss of $5,000 and receives a
$3,000 deduction from the $50,000.

During 2012, Hattie Hanover Recognizes a $11,000 Short-Term Capital Loss