Jawan has the following capital gains and losses in the current year: Short-term capital loss Long-term capital gain Long-term capital loss Long-term capital loss carryforward What is the effect of the capital gains and losses on Jawan's taxable income? The capital gain and loss netting results in a short-term capital loss of $ Feedback Check My Work $1,300 8,600 4,100 3,500 The netting procedure determines the net long-term and short-term capital gains or losses for the year.