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

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Q: . Regine, Inc. owns 500 ordinary shares of Velasquez Company which has several hundred thousand…

A: Right refers to a privilege given to existing shareholders to purchase additional shares of a…

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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A: Date…

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A: The objective of the question is to determine the amount and character of the distributions received…

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A: Given: Matt carried Dallas investment at $150900 and 165600 at Dec 31,2020 and Dec31,2021 So,…

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Q: Want to give you a correct answer

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Q: None

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A: Basic Information Sale Consideration = $200,000Cost of Acquisition = $100,000

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A: The profit obtained from the sale of assets held for longer than a year, like stocks or real estate,…

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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.