Short-term capital losses are netted against long-term capital gains, and long-term capital losses are netted against short-term capital gains.

Question

Quizplus · Accepted Answer

Short-term and long-term capital gains and losses are netted separately. Short-term losses are first netted against short-term gains, and long-term losses are netted against long-term gains. If there is a net loss in one category, it can offset gains in the other category.

Short-Term Capital Losses Are Netted Against Long-Term Capital Gains, and Long-Term