Amy has long-term capital gains (LTCGS) taxed at different tax rates, 15%, 25% and 28% She also has net short-term capital losses (NSTCLS) that amount to less than her net long-term capital gain (NLTCG) The procedure for offsetting the NSTCL against the LTCGs is favorable to her. Explain OA. The NSTCL is first offset against LTCG that is taxed at 28%, the highest rate for LTCG, then against LTCG taxed at 25%, and finally against the LTCG that is adjusted net capital gain (ANCG) taxed at 15% or 20% The NSTCL is used first to reduce gains taxed at the higher rates OB. The NSTCL is offset against the LTCG that is taxed at 15% or 20% first Any NSTCL remaining can be carried forward to be offset against LTCG that is taxed at 15% or 20% in a following year, up to twenty years. The NSTCL is used to remove a portion of the captial gains tex that must be paid OC. The NSTCL is first offset against LTCG that is taxed at 15% or 20%, the lowest rate for LTCG, then against LTCG taxed at 25%, and finally against the LTCG tared at the highest rate of 28% The NSTCL is used first to reduce gains taxed at the lower rates OD. The NSTCL is offset against the LTCG that is taxed at 20% Any NSTCL remaining can be carried forward to be offet against LTCG that is taxed at 20% in a following year, up to twenty years. The NSTCL is used to reduce gains that are taxed at 28%
Amy has long-term capital gains (LTCGS) taxed at different tax rates, 15%, 25% and 28% She also has net short-term capital losses (NSTCLS) that amount to less than her net long-term capital gain (NLTCG) The procedure for offsetting the NSTCL against the LTCGs is favorable to her. Explain OA. The NSTCL is first offset against LTCG that is taxed at 28%, the highest rate for LTCG, then against LTCG taxed at 25%, and finally against the LTCG that is adjusted net capital gain (ANCG) taxed at 15% or 20% The NSTCL is used first to reduce gains taxed at the higher rates OB. The NSTCL is offset against the LTCG that is taxed at 15% or 20% first Any NSTCL remaining can be carried forward to be offset against LTCG that is taxed at 15% or 20% in a following year, up to twenty years. The NSTCL is used to remove a portion of the captial gains tex that must be paid OC. The NSTCL is first offset against LTCG that is taxed at 15% or 20%, the lowest rate for LTCG, then against LTCG taxed at 25%, and finally against the LTCG tared at the highest rate of 28% The NSTCL is used first to reduce gains taxed at the lower rates OD. The NSTCL is offset against the LTCG that is taxed at 20% Any NSTCL remaining can be carried forward to be offet against LTCG that is taxed at 20% in a following year, up to twenty years. The NSTCL is used to reduce gains that are taxed at 28%
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:Amy has long-term capital gains (LTCGS) taxed at different tax rates, 15%, 25% and 28% She also has net short-term capital losses (NSTCLS) that amount to less than her net
long-term capital gain (NLTCG) The procedure for offsetting the NSTCL against the LTCGs is favorable to her. Explain
OA. The NSTCL is first offset against LTCG that is taxed at 28%, the highest rate for LTCG, then against LTCG taxed at 25%, and finally against the LTCG that is adjusted net
capital gain (ANCG) taxed at 15% or 20% The NSTCL is used first to reduce gains taxed at the higher rates
OB. The NSTCL is offset against the LTCG that is taxed at 15% or 20% first. Any NSTCL remaining can be carried forward to be offset against LTCG that is taxed at 15% of 20%
in a following year, up to twenty years. The NSTCL is used to remove a portion of the captial gains tax that must be paid
OC. The NSTCL is first offset against LTCG that is taxed at 15% or 20%, the lowest rate for LTCG, then against LTCG taxed at 25%, and finally against the LTCG taxed at the
highest rate of 28% The NSTCL is used first to reduce gains taxed at the lower rates
OD. The NSTCL is offset against the LTCG that is taxed at 28% Any NSTCL remaining can be carried forward to be offset against LTCG that is taxed at 28% in a following year,
up to twenty years. The NSTCL is used to reduce gains that are taxed at 28%
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