Dollery established that Franchesco: plans to retire from her job in 20 years, after which this portfolio will be her primary source of income. has sufficient cash available so that she will not need this portfolio to generate cash outflows until she retires. opposes certain policies of the government of her home country and does not wish to own any securities of companies that do business with its regime. To complete the assessment of Franchesco's investment constraints, Dollery still needs to inquire about Franchesco's: Select one or more: liquidity needs time horizon unique needs tax concerns

Dollery established that Franchesco: plans to retire from her job in 20 years, after which this portfolio will be her primary source of income. has sufficient cash available so that she will not need this portfolio to generate cash outflows until she retires. opposes certain policies of the government of her home country and does not wish to own any securities of companies that do business with its regime. To complete the assessment of Franchesco's investment constraints, Dollery still needs to inquire about Franchesco's: Select one or more: liquidity needs time horizon unique needs tax concerns

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 57P

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Concept explainers

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.

Question

34)

Dollery established that Franchesco:

plans to retire from her job in 20 years, after which this portfolio will be her primary source of income.
has sufficient cash available so that she will not need this portfolio to generate cash outflows until she retires.
opposes certain policies of the government of her home country and does not wish to own any securities of companies that do business with its regime.

To complete the assessment of Franchesco's investment constraints, Dollery still needs to inquire about Franchesco's:

Select one or more:

liquidity needs

time horizon

unique needs

tax concerns

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