Which of the Following Is Not True of Capital Gains

Multiple Choice

Which of the following is not true of capital gains and losses?

A) Capital gains and losses are always netted before the treatment of the excess is determined.
B) Net short-term capital gains in excess of net long-term capital losses are subject to tax at ordinary rates.
C) Net capital losses in excess of net capital gains are fully deductible within an annual limitation.
D) A capital gain deduction is allowed for a portion of net long-term capital gains in excess of net short-term capital losses.