Question

Coline has the following capital gain and loss transactions for 2020.

a. Short-term capital gain $6,700
b. Short-term capital loss (2,814)
c. Long-term capital gain (28%) 8,040
d. Long-term capital gain (15%) 2,680
e. Long-term capital loss (28%) (14,070)
After the capital gain and loss netting process, what is the amount and character of Coline's gain or loss?

Answer 1

Net short-term capital gain; $536

Step-by-step explanation:

Calculation to determine the amount and character of Coline's gain or loss

Net short-term capital gain= ([$6,700-$2,814] - [($8,040-$14,070)-$2,680])

Net short-term capital gain= $3,886-$3,350

Net short-term capital gain= $536

Therefore After the capital gain and loss netting process, the amount and character of Coline's gain will be NET SHORT-TERM CAPITAL GAIN of $536