54. Martha has both long-term and short-term 2013 capital gains and losses. The result of netting these gains and losses is a net longterm capital loss. Martha has no qualified dividend income. Also, Martha’s 2013 taxable income puts her in the 28% tax bracket. Which of the following is correct?

Question

54.	Martha has both long-term and short-term 2013 capital gains and losses. The result of netting these gains and losses is a net long­term capital loss. Martha has no qualified dividend income. Also, Martha’s 2013 taxable income puts her in the 28% tax bracket. Which of the following is correct?

Quizplus · Accepted Answer

Since Martha has both short-term (Schedule D,Part I)and long-term (Schedule D,Part II)capital gains and losses,the results of netting those items will be further netted in Schedule D,Part III.There is a net capital loss,so there will be a capital loss deduction.

54 Martha Has Both Long-Term and Short-Term 2013 Capital Gains and Losses