Which of the Following Is Not True of Capital Gains

question 11

Multiple Choice

Which of the following is not true of capital gains and losses?

• A)Capital gains and losses are always netted before the treatment of the excess is determined.
• B)Net short-term capital gains in excess of net long-term capital losses are subject to tax at ordinary rates.
• C)Net capital losses in excess of net capital gains are fully deductible within an annual limitation.
• D)A capital gain deduction is allowed for a portion of net long-term capital gains in excess of net short-term capital losses.