Elaine Case (single with no dependents) has the following transactions in 2012:
|
AGI (exclusive of capital gains and losses) |
$240,000 |
|
Long term capital gain |
22,000 |
|
Long term capital loss |
(8,000) |
|
Short term capital gain |
19,000 |
|
Short term capital loss |
(23,000) |
What is Elaine’s net capital gain or loss? Draft a letter to Elaine describing how the net capital gain or loss will be treated on her tax return. Assume that Elaine’s income from other sources puts her in the 35% bracket. Elaine’s address is 300 Ireland Avenue, Shepherdstown, WV 25443.