Wally (who is in the 25 percent tax bracket)has a $5,000 short-term capital loss on some bonds,a $6,000 long-term capital loss on collectibles,a $15,000 Section 1202 gain,and a net $4,000 long-term capital gain from an investment.What is amount and type of gain(s)and tax rate(s)applied?

Question

Quizplus · Accepted Answer

the $6,000 collectible loss and $5,000 STCL loss offset $11,000 of the $15,000 Sec.1202 gain; the remaining gain ($4,000)is taxed at 28%; the $4,000 LTCG is taxed at 15%

Wally (Who Is in the 25 Percent Tax Bracket)has a $5,000