Martha has both long-term and short-term 2019 capital gains and losses.The result of netting these gains and losses is a net long-term capital loss.Martha has no qualified dividend income.Also, her 2019 taxable income puts her in the 24% tax bracket.Which of the following is correct?
A)Martha will use Parts I, II, and III of 2019 Form 1040 Schedule D.
B)Martha will not benefit from the special treatment for long-term capital gains.
C)Martha will have a capital loss deduction.
D)All of these.
E)None of these.

Question

Quizplus · Accepted Answer

Martha will use Parts I and II of Schedule D to report her short-term and long-term capital gains and losses, respectively, and Part III to summarize these amounts and calculate her net gain or loss. Since she has a net long-term capital loss and no qualified dividend income, she won't benefit from the lower tax rates that apply to long-term capital gains. However, she can still deduct a portion of her capital loss against her ordinary income, subject to the annual limit on capital loss deductions.

Martha Has Both Long-Term and Short-Term 2019 Capital Gains and Losses.The