A net short-term capital loss first offsets any 28% net long-term capital gain before it offsets either 25% of net long- term capital gain or 0%/15%/20% of net long-term capital gain.

Question

Quizplus · Accepted Answer

This is true according to the Internal Revenue Service (IRS) rules for capital gains and losses. The net short-term capital loss is first applied to offset any 28% net long-term capital gain before it offsets either 25% of net long-term capital gain or 0%/15%/20% of net long-term capital gain.

A Net Short-Term Capital Loss First Offsets Any 28% Net