b. She uses the specific identification method and she wants to minimize her current-year capital gain

Q: Purchased Shares 610 510 710 460 7/10/2012 4/20/2013 1/29/2014 11/02/2016 Bania $ 31,110 28,968…

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Q: Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a…

A: Section 302(b)(2) states the redemption test for determining whether the shares remained with the…

Q: ! Required information [The following information applies to the questions displayed below.] Dahlia…

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A: Date…

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A: Pop Corp owns 35% in Small Corp that is 200 shares of stock = $100 Market value = $500 End of 2021,…

Q: None

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.