Kendrick,who has a 35% marginal tax rate,had the following results from transactions during the year: After offsetting the STCL,what is (are)the resulting gain(s)?

Question

Kendrick,who has a 35% marginal tax rate,had the following results from transactions during the year:  After offsetting the STCL,what is (are)the resulting gain(s)?

Quizplus · Accepted Answer

The STCL of $10,000 can be offset against the $16,000 collectibles gain, leaving a net collectibles gain of $6,000. The $10,000 STCL can also be offset against the $10,000 of the $18,000 STCL, leaving a net LTCG of $8,000. Therefore, the resulting gains are $6,000 collectibles gain and $8,000 LTCG. The answer is A.

Kendrick,who Has a 35% Marginal Tax Rate,had the Following Results