For the Current Year, a Taxpayer Had a Short-Term Capital

question 23

Multiple Choice

For the current year, a taxpayer had a short-term capital gain (STCG) of $5,000 and a short-term capital loss (STCL) of $1,000.The taxpayer also had a long-term capital gain (LTCG) of $3,000 and a long-term capital loss (LTCL) of $6,000.Based upon that information, which of the following is not true?

• A)The taxpayer has a NSTCG of $4,000.
• B)The taxpayer has a NLTCL of $3,000.
• C)The taxpayer treats the net gain of $1,000 just like ordinary income.
• D)The taxpayer cannot combine the NSTCG and NLTCL; therefore, the NSTCG is treated like ordinary income and the NLTCL is deductible as a net capital loss (NCL).

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