LO.5 Elaine Case (single with no dependents) has the following transactions in 2012:

AGI (exclusive of capital gains and losses) $240,000 Long-term capital gain 22,000 Long-term capital loss (8,000)

Short-term capital gain 19,000 Short-term capital loss (23,000)

What is Elaine’s net capital gain or loss? Draft a letter to Elaine describing how the net capital gain or loss will be treated on her tax return. Assume that Elaine’s income from other sources puts her in the 35% bracket. Elaine’s address is 300 Ireland Avenue, Shepherdstown, WV 25443.