Question

Terry has $14,000 short-term capital loss, $6,000 28% gain, and $7,000 0%/15%/20% gain. What is his aggregate capital gain or loss?

$1,000 capital loss deduction.

$3,000 capital loss deduction.

$1,000 net capital gain.

$6,000 net capital gain.

$14,000 net capital loss.

Answer 1

Option A $1,000 capital loss deduction.
As the net capital loss left is
Short term capital loss	($14,000)
Gain 28%	6000
Gain 0%/15%/20%	7000
Capital loss deduction	($1,000)
It can be claimed upto $3000 and can be offset from other
type income that taxpayer earned
As there is net capital loss of $1000 hence $1000 capital
loss deduction will be claimed. Maximum limit is $3000 per year
If any doubt please comment