Which statements are TRUE regarding the taxation of capital gains?
I A capital gain is considered to be short term if a position is liquidated at a profit after being held for 1 year or less
II A capital gain is considered to be short term if a position is liquidated at a profit after being held for over 1 year
III For investors in the maximum tax bracket, any short term capital gains will be taxed at the same tax rate as that bracket
IV For investors in the maximum tax bracket, any short term capital gains will be taxed at a lower rate than that bracket
Answer: I and III
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Intro to Taxation
- A customer buys $20,000 of ABC stock in March of 20XX. On December 31, 20XX, the stock is valued at $16,000. The customer will be able to deduct how much on this year's tax return?
- In the same year, a customer has $14,000 of long-term capital losses on stock positions and $4,000 of short-term capital gains on options positions. Which statement is TRUE?
- A customer in the 28% tax bracket has $4,000 of capital gains and $12,000 of capital losses. How much unused loss is carried forward to the next tax year?
- A customer has $8,000 of capital losses and $3,000 of capital gains in a tax year. On that year's tax return, the investor has a(n):
- Which statement is TRUE about taxation of capital gains?
- Which of the following statements are TRUE about capital gains taxes for investors who are not extremely high earners?
- Which of the following securities transactions would result in a long term capital gain?
- For investors who are not extremely high earners, the maximum tax rate on cash dividends received is:
- All of the following items are included as deductible passive losses on the income tax returns of limited partnership investors EXCEPT:
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- Which of the following would be defined as "portfolio income" under IRS regulations?
- All of the following would be taxable at "earned income" rates under IRS regulations EXCEPT:
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