In X8, Erin had the following capital gains (losses) from the sale of her investments:$2,000 LTCG, $25,000 STCG, ($9,000) LTCL, and ($15,000) STCL. What is the amount and nature of Erin's capital gains and losses?
A) $3,000 net short-term capital gain.
B) $4,000 net long-term capital loss.
C) $4,000 net short-term capital gain.
D) $3,000 net long-term capital loss.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The net short-term capital gain is $25,000 - $15,000 = $10,000. The net long-term capital loss is $2,000 - $9,000 = $7,000. The overall net capital gain is $10,000 - $7,000 = $3,000.

In X8, Erin Had the Following Capital Gains (Losses) from the Sale