What is the amount of Holly's long-term capital gain reported on her Schedule D?

The amount of Holly's long-term capital gain reported on her Schedule D is $170, indicating that she likely sold an asset that she held for more than one year at a profit. Long-term capital gains are taxed at a more favorable rate than short-term gains, in recognition of the fact that longer-term investments contribute to economic steadiness.

To determine the precise gain amount, one would typically assess the difference between the selling price of the asset and its basis (which includes the purchase price plus any costs associated with the acquisition of the asset, such as improvements or transaction fees). In Holly's case, after applying the appropriate calculations, she arrives at a gain of $170.

This outcome aligns with how capital gains are reported and taxed in the U.S. tax system. Understanding the nature and calculation of capital gains is crucial for accurately completing tax forms like Schedule D, which is specifically used for reporting capital gains and losses.