For 2011,Stuart has a short-term capital loss,a collectible long-term capital gain,and a long-term capital gain from land held as investment.The short-term loss is first applied to the collectible capital gain.

Question

Quizplus · Accepted Answer

According to IRS rules, short-term capital losses are first applied to any collectible long-term capital gains. Only after these losses have been absorbed can they be applied to long-term capital gains from other sources. Therefore, in Stuart's case, the short-term capital loss would first be applied to the collectible long-term capital gain.

For 2011,Stuart Has a Short-Term Capital Loss,a Collectible Long-Term Capital