The tax law requires that capital gains and losses be separated from other types of gains and losses. Among the reasons for this treatment are:

a. Long-term capital gains may be taxed at a lower rate than ordinary gains.

b. Net capital loss is deductible only up to $3,000 per year for individual taxpayers.

c. Short-term capital losses are not deductible.

d. "Long-term capital gains may be taxed at a lower rate than ordinary gains" and "Net capital loss is deductible only up to $3,000 per year for individual taxpayers".