Ryan has the following capital gains and losses for 2014: $6,000 STCL, $5,000 28% gain, $2,000 25% gain, and $6,000 0%/15%/20% gain. Which of the following is correct:

Question

Quizplus · Accepted Answer

Ryan's net capital gain is calculated by offsetting the $6,000 short-term capital loss (STCL) against the gains. The $6,000 STCL first offsets the $5,000 28% gain, leaving a $1,000 STCL. This $1,000 STCL then offsets $1,000 of the $2,000 25% gain, leaving $1,000 of the 25% gain. The $6,000 0%/15%/20% gain remains unaffected. Thus, the net capital gain is $1,000 25% gain and $6,000 0%/15%/20% gain.

Ryan Has the Following Capital Gains and Losses for 2014