Question

During 2019, Trevor has the following capital transactions:

LTCG
$ 6,000

Long-term collectible gain
2,000

STCG
4,000

STCL
10,000

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After the netting process, the following results:


a) Long-term collectible gain of $2,000.

b) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL of $6,000.

c) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000.

d) LTCG of $2,000.

e) None of these.

Answer 1

The correct answer is: c) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000. During 2019, Trevor had a long-term capital gain (LTCG) of $6,000, a long-term collectible gain of $2,000, and a short-term capital loss (STCL) of $10,000. After the netting process, the result is a LTCG of $6,000, a long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000.

Step-by-step explanation:

The correct answer is: c) LTCG of $6,000, long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000.

During 2019, Trevor had a long-term capital gain (LTCG) of $6,000, a long-term collectible gain of $2,000, and a short-term capital loss (STCL) of $10,000. After the netting process, the result is a LTCG of $6,000, a long-term collectible gain of $2,000, and a STCL carryover to 2019 of $3,000. This means that Trevor can carry over the remaining $3,000 of STCL to offset future capital gains.

The other options do not match the given information, so they are incorrect.