Mr. Briggs purchased an apartment complex January 10, 2016 for $6,000,000 with 20% of the price allocated to l

Q: mdicate, by matching the relevant amounts, the original acquisition cost and enhancement expenditure…

A: When an amount of expenditure is incurred on an asset for the purpose to enhance the value of the…

Q: Bev bought a small mom and pop grocery store. The sale was completed and Bev obtained ownership on…

A: Intangible Assets: An intangible asset is an asset that needs real substance. This is as opposed to…

Q: Umair sold some equipment he used in his business on August 29, 2022, that was originally purchased…

A: To calculate gain or loss on sale of the equipment, the book value of the same has to be arrived at…

Q: Joaquin purchased a $235,000 crane for a construction business. The crane was sold for $175,000…

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A:

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Q: residence

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Q: 48.) PLEASE ANSWER NOW PLEASE

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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.