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Subject:  Netting capital gains and losses Date:  12/30/1999  4:39 PM
Author:  ptheland Number:  24110 of 124586

Netting out your capital gains and losses
Fishing around in schedule D

Most of us are aware that you have to net out your capital gains and losses when figuring up your taxes for the year. But how does all this netting work? Should I be hanging around the local dock to learn how to net my capital gains and losses? Let's try to unravel some of this mystery.

First of all, there are a couple of levels of netting that go on. Long-term items are netted separately from short-term items. Then the long and short are netted together to produce the final result. It's easiest to just look at an example. Long John Silver sold two stocks so far this year. Both were held for more than a year, so are long-term items. He had a gain of $1,000 on his investment in (an internet startup selling trout and salmon online to unlucky fisherman), but a $600 lo