Martha has both long-term and short-term 2018 capital gains and losses. The result of netting these gains and losses is a net long-term capital loss. Martha has no qualified dividend income. Also, Martha's 2018 taxable income puts her in the 24% tax bracket. Which of the following is correct?
A) Martha will use Parts I, II, and III of 2018 Form 1040 Schedule D.
B) Martha will not benefit from the special treatment for long-term capital gains.
C) Martha will have a capital loss deduction.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Martha will use Parts I, II, and III of Schedule D to report her capital gains and losses. She will not benefit from the special treatment for long-term capital gains because she has a net long-term capital loss. She can deduct up to $3,000 of her capital loss against other income, resulting in a capital loss deduction.

Martha Has Both Long-Term and Short-Term 2018 Capital Gains and Losses