For 2010,Stuart has a short-term capital loss,a collectible long-term capital gain,and a long-term capital gain from land held as investment.The short-term loss is first applied to the collectible capital gain.

Question

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According to the IRS rules, short-term capital losses are first used to offset any short-term capital gains. If the short-term losses exceed the gains, up to $3,000 of the remaining losses can be used to offset ordinary income. Any remaining losses can be carried forward to future years. However, in the case of a collectible long-term capital gain, the short-term loss is first applied to the collectible gain before being used to offset any other type of long-term capital gains.

For 2010,Stuart Has a Short-Term Capital Loss,a Collectible Long-Term Capital