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Tax calculations: long and short term capital gains/losses

Tax calculations: long and short term capital gains/losses. See attached file for full problem description.

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5. A net short term capital loss of $9000 can be partially offset against a net long term capital gain of $5500, but limited to $3000 loss. $9000 - 5500 = 3500 loss of which $3000 is currently deductible. Answer is b.

6. The rule is 'more than one year' so c. must be the right answer.