Morgan has the following capital gains and losses for the current tax year
Short-term capital gains
$12,000
Long-term capital gains
3,000
Short-term capital losses
(7,000)
Long-term capital losses
(6,000)
What is Morgan's net capital gain or loss position for the year?

Question

Quizplus · Accepted Answer

To calculate net capital gain or loss, we first need to combine the gains and losses of the same type (short-term and long-term). For short-term, we have a total gain of $12,000 and a total loss of $7,000. Therefore, the net short-term capital gain is $5,000. For long-term, we have a total gain of $3,000 and a total loss of $6,000. Therefore, the net long-term capital loss is $3,000. Then, we combine the net gains or losses of each type to get the overall net gain or loss. In this case, the net short-term capital gain of $5,000 minus the net long-term capital loss of $3,000 gives us a net capital gain of $2,000.

Morgan Has the Following Capital Gains and Losses for the Current