A has $150,000 of short-term capital gains recognized throughout the year. A is advised that because of a peculiarity in the tax law, A can enter into a transaction that creates $150,000 of short-term capital losses and $1455,000 of long-term capital gains. Should A enter into this transaction? Why or why not. Would the answer be different if instead of having $150,000 of short-term capital gains, A had $150,000 of long-term capital gains? Why or why not?

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Entering into a transaction that creates 150000 of shortterm capital losses and 1455000 of longterm ... View the full answer