capital loss

问题如下：

On page 6, the final page of his presentation, Moynahan plans to discuss the tax implications of fixed-income investing. He wants the class to understand that the management of taxable portfolios is more complicated than that of tax-exempt portfolios. He outlines the following key considerations for managing taxable fixed-income portfolios:

1. Minimize interest income relative to capital gains.

2. Minimize capital gains relative to capital losses.

3. Forego attractive trading opportunity because of tax implications.

Which of the considerations outlined by Moynahan on page 6 of the presentation is least likely correct?

选项：

A.

Consideration A

B.

Consideration B

C.

Consideration C

解释：

Solution

B is correct. When managing taxable fixed-income portfolios, Moynahan should not minimize capital gains relative to capital losses because capital losses are generally only used to offset capital gains.

A is incorrect. When managing taxable fixed-income portfolios, Moynahan would want to minimize interest income relative to capital gains because capital gains are typically taxed at a lower effective tax rate.

C is incorrect. When managing taxable fixed-income portfolios, Moynahan may want to dismiss attractive relative value trades due to tax implications.