What is the net long term capital gain reported on Joanne's Schedule D?

To determine the net long-term capital gain reported on Joanne's Schedule D, it is essential to understand how long-term capital gains are calculated. Long-term capital gains arise from the sale of capital assets, such as stocks or real estate, held for more than one year. The net long-term capital gain is the difference between the total long-term capital gains and the total long-term capital losses.

If Joanne's overall long-term transactions result in a net gain of $2,450, this signifies that her long-term capital gains exceeded her losses by that amount. This figure is crucial as it reflects taxation responsibilities; long-term capital gains are generally taxed at lower rates compared to ordinary income.

Choosing this particular amount indicates a thorough understanding of how to combine various capital gain and loss transactions and accurately report them on tax forms. Hence, this option aligns with standard practices for reporting net long-term capital gains on Schedule D of the tax return, confirming its appropriateness in this context.

Understanding the components of capital gain calculations will empower students to deftly navigate similar questions in their studies and real-world applications.