Seamus had $16,000 of net short-term capital loss in 2012.In 2013,Seamus has $17,000 of long-term capital loss and $26,000 of long-term capital gain.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

From 2012, Seamus had a net short-term capital loss of $16,000. This can be carried over to 2013.

In 2013, Seamus had a long-term capital loss of $17,000 and a long-term capital gain of $26,000.

Thus, Seamus has a net long-term capital gain of $9,000 ($26,000 - $17,000).

To calculate the net short-term capital loss for 2013, we subtract the net long-term capital gain from the short-term capital loss carryover from 2012.

Net short-term capital loss = short-term capital loss carryover from 2012 - net long-term capital gain in 2013 
Net short-term capital loss = $16,000 - $9,000 
Net short-term capital loss = $7,000

Therefore, Seamus has a net short-term capital loss of $7,000 and a net long-term capital gain of $9,000 in 2013. Thus, both statement a and c are correct, making choice D the correct answer.

Seamus Had $16,000 of Net Short-Term Capital Loss in 2012