Abby has a $10,000 loss on some collectibles,a $5,000 Sec.1202 gain,and an $11,000 gain on some securities.If all gains and losses are long-term and Abby is in the 25 percent tax bracket,how is her net gain taxed?
A)$5,000 at 25%; $1,000 at 15%
B)$6,000 at 15%
C)$5,000 at 28%; $1,000 at 15%
D)$6,000 at 28%

Question

Quizplus · Accepted Answer

the $10,000 collectible loss offsets the $5,000 Sec.1202 gain first and then $5,000 of the investment gain.

Abby Has a $10,000 Loss on Some Collectibles,a $5,000 Sec