During 2016, Yoko has total capital gains of $8,000 and total capital losses of $16,000.
a. What is the effect of the capital gains and losses on Yoko's 2016 taxable income? Explain.
b. Assume that in 2017 Yoko has total capital gains of $10,000 and total capital losses of $7,500. What is the effect of the capital gains and losses on Yoko's taxable income in 2017? Explain.
c. How would your answer change if Yoko's total capital losses are $14,000 in 2017?