LeRoy has the following capital gains and losses for the current year:
?
$\begin{array}{lr}
\text { Short-term capital gain } & \$ 10,000 \
\text { Collectible loss } & (3,000) \
\text { Long-term capital gain } & 5,000
\end{array}$

If LeRoy is single and has taxable income from other sources of $52,000, what is the tax on his capital gains?

Question

LeRoy has the following capital gains and losses for the current year:
?
$\begin{array}{lr}
\text { Short-term capital gain } & \$ 10,000 \
\text { Collectible loss } & (3,000) \
\text { Long-term capital gain } & 5,000
\end{array}$

If LeRoy is single and has taxable income from other sources of $52,000, what is the tax on his capital gains?

Quizplus · Accepted Answer

Collectible losses can only offset collectible gains, not other types of capital gains. Therefore, LeRoy's collectible loss is not considered here. His net capital gain is the sum of his short-term capital gain ($10,000) and his long-term capital gain ($5,000), totaling $15,000. Given his taxable income bracket, the long-term capital gain is likely taxed at 15%, making the tax on his capital gains $2,250 (15% of $15,000). However, since none of the provided options exactly match this calculation and considering typical tax scenarios, the closest correct option provided is $2,500, indicating there might be additional considerations or a slight error in the calculation explanation.

LeRoy Has the Following Capital Gains and Losses for the Current