The taxpayers net capital gain is zero if the taxpayer has a net long-term capital loss. True or false

Q: If an individual purchases property insurance on business equipment, the premiums are deductible,…

A: The tax treatment of insurance premiums is determined by the kind of insurance and the purpose of…

Q: Generally, how will a suspended loss attributable to a passive activity that is transferred by…

A: When a taxpayer dies, the treatment of suspended losses attributable to a passive activity depends…

Q: What consequences does a taxpayer face when one of several activities is no longer a passive…

A: When a taxpayer is involved in several activities and one of them is no longer considered a passive…

Q: The use of the earned income credit could result in a taxpayer receiving a refund even though the…

A: Earned Income Credit(EIC) is a type of tax credit available to U.S. Citizens that earn low income…

Q: Joe Bagadonus is wrongfully terminated; you’re hired to calculate economic damages, which total…

A: The objective of the question is to determine the most appropriate total effective tax rates to use…

Q: Your tax basis in any asset or property you own – (a) can never be less than zero.…

A: A) Tax basis is the amount investment in Fixed assets. on this value the depreciation , gain or loss…

Q: When a taxpayer sells an asset, what is the difference between realized and regonized gain or loss…

A: Difference between complete and recognized gains and losses   Realized gains or losses for the…

Q: For any given year, your income tax payable can never exceed income tax expense. a) True b) False

A: Lets understand the basics. When there is temporary taxable difference arise book profit and tax…

Q: Which of the following is an adjustment that will generally result in lower tax liability for an…

A: A tax is a charge which is levied by the government on the taxable income of a taxpayer. A tax…

Q: A taxpayer who acquired property in a related party transaction where a loss is realized cannot use…

A: Related-party transaction refers to those transactions that reflects a deal or arrangement made…

Q: The tax law requires that capital gains and losses be separated from other types of gains and…

A: Short-term capital lose are allowed to be setoff against both long-term gain and short-term…

Q: A taxpayer uses

A: There are two basis in accounting  acrual and cash.                In accural basis…

Q: Describe some reasons why it is a good idea to file a tax return if you have earned income, even if…

A: If there is no tax liability, even then the Income-tax return (ITR) is mandatory to file if the…

Q: The first step that must be completed to determine the allowable losses when a taxpayer has multiple…

A: Given: The determination of allowable losses is carried out in the first step.

Q: Which of the following statements regarding the accrual equivalent after-tax return is most likely…

A: Option a: This option is incorrect because, It depends on the tax rate. In some cases, it could be…

Q: Unrealized losses on investments create a deferred tax asset in the period they first arise. O…

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: True (t) or False (f) ______ The IRS does not require the taxpayer to use the same depreciation…

A: Due to various reasons such as normal wear & tear, obsolescence, change in technology, etc., the…

Q: If you earn enough extra income to be placed in a higher tax bracket and have a higher marginal tax…

A: Marginal tax rate is the tax rate for next dollar of taxable income, which is above a threshold…

Q: Why might it be more advantageous for a taxpayer to demonstrate that they ... Why might it be more…

A: The correct answer for the above motioned question is given in the following steps.

Q: A taxpayer can not claim the hefalth insurance premium tax credit if?

A: Tax is the charge which is charged on the taxable income of a taxpayer and each taxpayer wants to…

Q: Which of the following tax items is of most value in terms of tax savings to a taxpayer? Choose the…

A: Taxable income: It is the gross total income on which the taxes are imposed by the government for a…

Q: A) Interest paid or accrued to purchase or carry tax-exempt investments is not deductible. B)…

A: Investment Income Under normal circumstances investment income can't be used for the tax deduction…

Q: true or false    capital gains on a principal residence are never taxable.

A: When a person sell his main inhabitant that is principal residence and there is gain on sale then it…

Q: How long can a taxpayer carry foward a 2021 Net Operation Loss (NOL)?

A: The question is related to the taxation. Net operating loss is the result of excess expenses over…

Q: The QBI deduction will reduce both the income tax and self-employment taxes owed by a self-employed…

A: Answer:   False.

Q: The money you receive back because you have overpaid your taxes is called a tax return. a. true b.…

A: Tax refund is the money which an individual gets back, if he has overpaid his taxes, that is, it is…

Q: An individual taxpayers net long-term capital losses retain their long-term status when carried over…

A: The concept given here is on capital gains as per IRS Taxation

Q: Which of the following is accurate regarding a real estate foreclosure transaction? A  A…

A: The question is based on the concept and principle of income tax for real estate transactions.…

Q: When a petition is filed with the Tax Court, the taxpayer is required to pay the deficiency only if…

A:

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.