Brunswick sold them shortly afterward and reported a $60 million net short-term capital loss.
On its consolidated federal tax return for 1990, Brunswick reported a net short-term capital loss of approximately $143 million; on its 1991 return it reported a long-term net capital loss of about $33 million from partnership transactions.
If M has additional ordinary or short-term capital-gain income and a current-year net short-term capital loss
of at least $3,000 (as in Example 6), the residual $3,000 long-term capital loss would have to be carried forward for future use.
Exhibit 2: Capital Gains and Losses--1998 Netting Process STEP #1 STEP #2 Ordinary Income: Short-term Capital Gain If Net Short-Term Capital Gain, extend to STEP #5 Short-term Capital Loss (If Net Short-Term Capital Loss, add to 28% Loss below) 28% rate: Collectibles & SBS(1) If Net 28% Gain, extend to STEP #5 Coll.
2) Collectibles, long-term capital loss carried and net short-term capital loss.
Type of gain/loss Amount First netting Short-term capital gain $1,500 Net short-term capital loss of $1,000 Short-term capital loss 2,500 Collectibles gain 3,000 Net 28% gain of $3,000 Collectibles loss 0 Unrecaptured Sec.
1(h)(5)(B) loss is collectibles loss, net short-term capital loss and long-term capital loss carried under Sec.
6% tax bracket and has a $50,000 net gain from 28% assets; a $20,000 net gain from 25% assets; a $10,000 net loss from 20% assets; a $5,000 net short-term capital loss
, and a $15,000 long-term CLC.