Andy has the following capital gains and losses during the current year:
$\begin{array}{lc}
\text { Short-term capital gain } &\$ 4,000 \
\text { Short-term capital loss } &(9,000) \
\text { Collectibles loss } &(2,000) \
\text { Long-term capital gain } &1,000
\end{array}$
Andy's capital gains and losses will
A)Increase taxable income by $2,000.
B)Decrease taxable income by $6,000.
C)Decrease taxable income by $3,000.
D)Decrease taxable income by $4,000.

Question

Quizplus · Accepted Answer

Netting the gains and losses results in a total capital loss of $6,000, but only $3,000 of this can be used to decrease taxable income in the current year.

Andy Has the Following Capital Gains and Losses During the Current