Question

This year, Dan Gilden sold several securities that left him with the following types of gains and losses:

• long-term capital gain—$60,000
• short-term capital gain—$40,000
• long-term capital loss—$92,000
• short-term capital loss—$32,000

What is the net capital gain or loss on Dan’s security sales?

Answer 1

Dan Gilden : Net capital gain/loss,

Long term capital asset,

	$
Long term Capital gain	60,000
Long term Capital loss	(92,000)
Net Long term Capital loss (carryforward)	32,000

Short term capital asset,

	$
Short term capital gain	40,000
Short term capital loss	(32,000)
Net short term capital gain	8,000

Net capital gain/loss

	$
Net Long term capital loss ($ 32,000 loss should carryforward to later assessment years)	Nil
Net short term capital gain	8,000
Net capital gain	8,000

* Long term capital loss not allowed to set-off against Short term capital gain.