Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct? a.The $1,500 loss will first be offset by the $5,000 long-term gain. b.The taxpayer will have a net short-term capital loss. c.The $1,500 loss will first be offset by the $4,000 short-term gain. d.The $4,000 short-term gain will first be offset by the $5,000 long-term gain.
Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct? a.The $1,500 loss will first be offset by the $5,000 long-term gain. b.The taxpayer will have a net short-term capital loss. c.The $1,500 loss will first be offset by the $4,000 short-term gain. d.The $4,000 short-term gain will first be offset by the $5,000 long-term gain.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 35P
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Thoren has the following items for the year: $4,000 of short-term capital gain , $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct?
a.The $1,500 loss will first be offset by the $5,000 long-term gain.
b.The taxpayer will have a net short-term capital loss.
c.The $1,500 loss will first be offset by the $4,000 short-term gain.
d.The $4,000 short-term gain will first be offset by the $5,000 long-term gain.
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