In advising a client regarding potential investments, potential advantages of investing in capital assets include which...
In advising a client regarding potential investments, potential advantages of investing in capital assets include which of the following?
a. the tax on capital gains is generally deferred until the gain is realized
b. long-term capital gains are taxed only at 5 percent
c. short- term capital gains are taxed only at 15 percent
d. a, b, and c
e. a and c only
Homework Answers
Answer: Option "a" is correct.
"The tax on capital gains is generally deferred until the gain is realized" is the correct answer.
A capital gain occurs when selling price is higher than the purchase price of a security or property. For tax purpose, profit is not realized until the security is sold.
Long term capital gain- When asset is held for more than one year and then sold, the profit is called LTGC. LTGC is taxed at the rate of 0%, 15%, 20%.
Short term capital gain- When asset is held for less than one year and then sold, the profit is called STCG. STCG is taxed as per the ordinary income tax brackets that is 10%, 12%, 22%, 24%, 32%, 35%.
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In advising a client regarding potential investments, potential
advantages of investing in capital assets include which...
Can someone help me on these questions? I also have a question regarding unrealized capital gains....
Can someone help me on these questions?
I also have a question regarding unrealized capital gains. I
remembered from the in-class materials, it stated that "unrealized
capital gains will be excluded in Canadian taxation system." So, I
am a bit confused when I see question 30. Can unrealized capital
gains be taxed? I am looking forward to hearing from you. Thank
you.
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pick 1 of the five things you should know about capital gains tax, and give a...
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Can someone help me on these questions?
I also have a question regarding unrealized capital gains. I
remembered from the in-class materials, it stated that "unrealized
capital gains will be excluded in Canadian taxation system." So, I
am a bit confused when I see question 30. Can unrealized capital
gains be taxed? I am looking forward to hearing from you. Thank
you.
An individual buys $100,000 in financial assets and holds them for 2 years. The financial assets earn 12%...
question 1 through 4 multiple choice
1. Which of the follow She following statements concerning the taxation of assets is correct? Ordinary income may qualify for a special 0% rate. Capital gains are always taxed at the taxpayers marginal tax rate. Section 1231 assets are taxed at ordinary rates, and losses are taxed at capital rates. Gains on Section 1231 assets are taxed at long-term capital gains tax rates, and losses are taxed at ordinary income tax rates. Which of...
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Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed as short-term capital gain, long-term capital gain taxed capital gain taxed at 15%, or long-term capital gain taxed at 0%. Assum as single and this is the only capital asset sold during the year. determine whether the gain ved at 20%, long-term %. Assume the taxpayer files a. Stock held for four years is sold for a $3,000 gain; taxable income is $25.000 b....
Why is the gain on the
sale of a houseboat which is used for personal purposed taxes at a
capital gains rate and not an ordinary rate?
Discussion Question 3-18 (LO. 8) During the year, Hernando has the following transactions: a. Gain on the sale of stock held as an investment for 10 months. b. Gain on the sale of land held as an investment for 4 years. C. Gain on the sale of a houseboat owned for 2 years...
pick 1 of the five things you should know about capital gains
tax, and give a pro or con point of view on the artical.
Paragraph Styles 6 5 Things You Should Know about Capital Gains Tax Updated for Tax Year 2019 OVERVIEW A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it also applies to personal property, such as a car. Every taxpayer should understand...
21. Phu Lighters has the following assets: Current assets. Capital Assets ........ $1,750,000 Total ......................... 3,000,000 $4,750,000 During 3 months of the year, current assets drop to $400,000. Its operating profit (EBIT) is expected to be $620,000. Its tax rate is 40 percent. Shares are valued at $10. Its capital structure is short-term financing at 3 percent and long-term financing of 50 percent equity, 50 percent debt at 6 percent. a. Calculate expected EPS if the firm is perfectly hedged....
Which of the following statements regarding available-for-sale debt investments is true? Select one: O a. Unrealized holding gains/losses are reported on the income statement O b. All debt security investments can only be classified as current OC. Income is affected by temporary changes in market value O d. The realized gain on sale is determined by comparing the amortized cost of the investment with its selling price,
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