Martha has both long-term and short-term 2013 capital gains and losses. The result of netting these gains and losses is a net longterm capital loss. Martha has no qualified dividend income. Also, Martha's 2013 taxable income puts her in the 28% tax bracket. Which of the following is correct?

Question

Martha has both long-term and short-term 2013 capital gains and losses. The result of netting these gains and losses is a net long­term capital loss. Martha has no qualified dividend income. Also, Martha's 2013 taxable income puts her in the 28% tax bracket. Which of the following is correct?

Quizplus · Accepted Answer

Martha will use Schedule D to report her capital gains and losses (A), she will not benefit from special treatment for long-term capital gains because she has a net capital loss (B), and she can deduct up to $3,000 of her net capital loss against other income (C).

Martha Has Both Long-Term and Short-Term 2013 Capital Gains and Losses