In November this year Hailey reviewed her investment portfolio and decided to sell AGG mutual fund on December 22 to harvest a loss. Hailey purchased 500 AGG shares 5 years ago for $10,000 and she sold them on December 22 of this year for $6,000. In the first part of January next year Hailey sees the AGG fund price start to increase rapidly and she has regrets about selling in the first place. So on January 14 of next year Hailey buys back 500 shares for $8,000. What is the impact of this transaction on Hailey's income tax return this year? issions ueButton O 

The sale will generate a $4,000 long-term capital loss  

The sale will generate a $4,000 short-term capital loss  

The sale will not generate any capital gain or loss. 

The sale will generate a short-term capital loss of $2,000