Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 37

Which statement is true regarding short-term capital gains? a. If there are a net short-term gain and a net long-term gain, both gains are taxed at regular rates.
B) A long-term loss offsets a short-term gain, and if a gain results, the gain is taxed at regular rates.
C) A long-term loss offsets a short-term gain, and if a gain results, the gain is taxed at preferential rates.
D) If there are a net short-term gain and a net long-term gain, both gains are taxed at preferential rates.