Question: Daryl has three capital transactions for the current year: 1 . A short - term capital loss of $ 8 , 0 0 0 .

Daryl has three capital transactions for the current year:
1. A short-term capital loss of $8,000.
2. A short-term capital gain of $6,000.
3. A long-term capital loss of $5,000.
What is the net effect on Daryls income taxes this year if he is in the 37% income tax bracket?
Group of answer choices
A $2,000 deduction
A $2,590 tax reduction
A $1,110 tax reduction
A $7,000 deduction

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