Gabrielle has the following gains and losses for the current year:
?
$$\begin{array} { l r }
\text { Short-term capital loss } & \$ ( 8,000 ) \
\text { Long-term capital gain } & 3,000 \
\text { Section } 1231 \text { gain } & 3,000 \
\text { Section } 1231 \text { loss } & ( 5,000 )
\end{array}$$
What is Gabrielle's net capital gain or loss position for the year?
A)$7,000 net short-term capital loss.
B)$3,000 net short-term capital gain.
C)$5,000 net short-term capital loss.
D)$3,000 net short-term capital gain

Question

Gabrielle has the following gains and losses for the current year:
?
$$\begin{array} { l r } 
\text { Short-term capital loss } & \$ ( 8,000 ) \
\text { Long-term capital gain } & 3,000 \
\text { Section } 1231 \text { gain } & 3,000 \
\text { Section } 1231 \text { loss } & ( 5,000 )
\end{array}$$
What is Gabrielle's net capital gain or loss position for the year?
A)$7,000 net short-term capital loss.
B)$3,000 net short-term capital gain.
C)$5,000 net short-term capital loss.
D)$3,000 net short-term capital gain

Quizplus · Accepted Answer

To calculate Gabrielle's net capital gain or loss position, we need to add up all the gains and losses for the year. 
Short-term gains and losses are those resulting from the sale of assets held for a year or less. 
Gabrielle's short-term gains are $10,000+ $5,000 +$1,000 = $16,000
Her short-term losses are $6,000 + $12,000+ $3,000 = $21,000 
Therefore, her net short-term capital loss is $21,000-$16,000 = $5,000 (option C)

Gabrielle Has the Following Gains and Losses for the Current