The capital gains (losses)netting process for taxpayers without 25 or 28 percent capital gains requires them to (1)net short-term and long-term gains, (2)net short-term and long-term losses, and (3)net the outcome to yield a final gain or loss to place on the tax return.

Question

Quizplus · Accepted Answer

Taxpayers must first net their short-term gains and losses to determine a net short-term gain or loss. Then, they separately net their long-term gains and losses to determine a net long-term gain or loss. Finally, they net the short-term and long-term results against each other to determine the overall net capital gain or loss to report on their tax return.

The Capital Gains (Losses)netting Process for Taxpayers Without 25 or 28