Alan has the following capital gains and losses during the current year:
$\begin{array}{lc}
\text { Short-term capital loss } & \$(4,000) \
\text { Collectibles gain } & 3,000 \
\text { Long-term capital gain } & 8,000
\end{array}$
Alan's capital gain/loss position for the year is:

Question

Quizplus · Accepted Answer

Alan's net capital gain/loss is calculated by offsetting the short-term capital loss against the long-term capital gain and collectibles gain. The short-term capital loss of $4,000 offsets the $3,000 collectibles gain and $1,000 of the long-term capital gain, resulting in a net long-term capital gain of $7,000.

Alan Has the Following Capital Gains and Losses During the Current