Problem 1: Gertie has a NSTCL of $9,000 and a NLTCG of $5,500 during the current taxable year.
After gains and losses are offset, Gertic reports
An offset against
|
|
ordinary income
|
Loss carryforward
|
|
a.
|
3,000
|
$ -0-
|
|
b.
|
$ 3,000
|
$ 500
|
|
c.
|
$ 3,500
|
$ -0-
|
|
d.
|
$ 3,000
|
$ 6,000
|
Problem 2: How long must a capital asset be held to qualify for long-term treatment?
a. 6 months
b. one year
c. one year and one day
d. same trade date one year from purchase