Taxpayers are allowed to offset net short-term capital losses with net long-term capital gains.

Question

Quizplus · Accepted Answer

This statement is true. Net short-term capital losses can be used to offset net long-term capital gains, and vice versa. If the losses exceed the gains in a given tax year, up to $3,000 of the remaining net loss can be deducted against ordinary income, such as wages or salaries. Any remaining net loss can be carried forward to future tax years.

Taxpayers Are Allowed to Offset Net Short-Term Capital Losses with Net