✏️+🎥Other Itemized Deductions (OBBBA)🟢

Responses

1. 

   Christopher Rosenfelt 25 October 2024

   Farhat says let’s net the short term together but then proceeds to net out long-term capital gain with short-term capital loss. Semantically this is incorrect based on what he initially stated he was doing; however, is the calculation technically still correct? Does it matter if short-term capital loss is netted out with a long-term capital gain?

   1. 

      Christopher Rosenfelt 25 October 2024

      Unfortunately, I’m not able to edit my prior post, I wrote it in reverse, meaning, long-term capital loss was netted with short-term capital gain. My main question is still whether this netting of short-term with long-term is correct?

      1. 

         Maroun, CPA 28 October 2024

         Hello Christopher,

         You’re absolutely right to bring this up. ($1,500) was inadvertently treated as a STCL.
         The long-term capital loss of $1,500 should be netted with the long-term capital gain of $3,000, resulting in a net long-term capital gain (LTCG) of $1,500.

         Since there is no short-term capital loss (STCL), the net short-term capital gain is $1,000.

         After completing the netting within their respective categories, the final result should be a net LTCG of $1,500 and a net STCG of $1,000.

         We will update the video. Thank you for pointing that out!