What will be the net capital gain

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Question - An individual had the following gains and losses for the year:

Short-term capital loss $30,000

Section 1231 loss $20,000

Long-term capital gain (unrecaptured Section 1250 at 25%) $18,000

Collectibles gain (28% rate) $20,000

Long-term capital gain (15% rate) $15,000

Required - What will be the net capital gain (loss) reported by the individual and at what applicable tax rate(s)?

A. Long-term gain of $3,000.

B. Collectibles gain of $3,000.

C. Long-term gain (unrecaptured Section 1250) of $3,000 at 25% and collectibles gain of $20,000 at 28% rate.

D. Long-term gain (unrecaptured Section 1250) of $8,000 at 25% and long-term gain of $15,000 at 15%.

Reference no: EM132895370

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