Question

1. How do we offset Capital gains and losses each year?  Bracketing is a process for doing this.  What is included in the bracketing process?  

HINT:

Long-Term Capital Gains/LTCG

Long-Term Capital Losses/LTCL

Short-Term Capital Gains/STCG

Short-Term Capital Losses/STCL

With the following information, do the bracketing as you explained above and determine what type of gain or loss you would have.

Sold piece of investment land held for two years for a gain of           $5,000

Sold stock in a company held for three months for a loss of             ($2,000)

Sold stock in a company held for five years for a loss                             ($3,000)

Sold piece of investment land held for seven months for a gain of   $1,000

Answer 1

Sold piece of investment land held for two years for a gain of           $5,000

old stock in a company held for five years for a loss                             ($3,000)

Long term capital loss of $ 2000

Sold stock in a company held for three months for a loss of             ($2,000)

Sold piece of investment land held for seven months for a gain of   $1,000

Short term capital loss of $ 1000