Question

in the current year, erin had the following capital gains (losses) from the sale of her investments: $1,900 ltcg, $25,100 stcg, ($8,900) ltcl, and ($14,900) stcl. what is the amount and nature of erin's capital gains and losses?

Answer 1

The amount and nature of Erin's capital gains and losses are:

Short term capital losses are first offset with the same type of capital gain (i.e., short term capital gain).

Similarly, long term capital losses are first offset with long term capital gain

Net Losses of one kind then can be offset with other kind of gain.

Hence:

STEP 1:

Net Long-Term Capital Loss=$8900-$1900=$7,000

STEP2

Net Short-Term Capital Gain =25100-14900=$10,200

STEP 3

At this step, the Net Long-Term Capital Loss of $7,000 will be deducted from Net Short-Term Capital Gain of $10,200

Amount of Erin’s Capital gain =SHORT TERM CAPITAL GAIN of (10200-7000) =$3,200

ANSWER: $3,200 net short-term capital gain

One of the quality methods for novices to discover ways to investment on shares is to positioned cash in a web funding account, that could then be used to spend money on stocks of inventory or inventory mutual funds.  With many brokerage accounts, you may begin making an investment for the fee of an unmarried share.

Learn more about capital gains here:

brainly.com/question/9144560

#SPJ4