What are capital gains and losses, and how are they taxed?

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment…

Q: accounting income and taxable income?

A: Accounting Income -: Accounting Income is the revenue a firm earns or keeps after paying off all…

Q: meron is single and has taxable income of $93,656. Determine his tax liability using the tax tables…

A: Income tax: - Income tax is the tax that has to be paid to the income tax department by the…

Q: When does tax allocation within a period become necessary?How should this allocation be handled?

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Q: What capital gains are subject to capital gains taxation?

A: The  сарitаl  gаins  tаx  is  the  levy  оn  the  рrоfit  frоm  аn  investment  thаt  is  inсurred…

Q: What are arguments for and against preferential treatment of capital gains?

A: Capital gain defined as the increase in the value of the capital asset and it is realized when the…

Q: But capital gains may be tax-advantaged for some investors. Therefore, tInterest = tDividends but,…

A: The Imputation system implies that firm income distributed as dividend effectively taxes at the…

Q: What are some of the effects of the crypto-related activities on an individual's tax payable?

A: Answer:-  Cryptocurrency meaning:- A cryptocurrency is a kind of digital or virtual currency that is…

Q: What types of income should not be classified as such on a tax return? Why shouldn't they be…

A: Answer Nontaxable income won’t be taxed, whether or not you enter it on your tax return. nontaxable…

Q: Explain why someone might owe a tax balance

A: The objective of this question is to understand the reasons why an individual might owe a tax…

Q: what are the two components of income tax expense

A: PLEASE LIKE THE ANSWER  Firstly, income tax expense means an amount of tax expense incurred on the…

Q: What is Income?   What is Total Income?   What is Net Income?   What is taxable income?

A: Income, in financial terms, refers to the money that an individual or business receives in exchange…

Q: What is the purpose of valuation in terms of taxation?

A: Introduction : In simple words, valuation refers to the process in which the intrinsic value of a…

Q: What is meant by “tax allocation within a period”? What is the justification for such practice?

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: What is the logic behind allowing tax loss carrybacks/carryforwards?

A: Logic behind allowing tax loss carrybacks and carryforwards: A tax loss carryback permits a company…

Q: What are the capital assets subject to capital gains tax?

A: capital assets are significant piece of property which may be the home ,cars investment property…

Q: When is a receivable recognized for property tax assessments? When is the revenue recognized?

A: Property tax assessment is the process of evaluating the property for tax purposes. Then an…

Q: tax

A:

Q: What is an unrecognized tax benefit and how does it affect a company's current income tax expense?

A: The Meaning of Income Tax: FASB defines income tax as a tax on earnings. It is measured in terms of…

Q: What are long-term capital gains? Are they taxed like other income? Explain.

A: A long-term capital gain or loss is the gain or misfortune coming about because of the selling of…

Q: How can we determine ordinary gains and capital gains?

A: Answer: In the course of normal business, an ordinary gain is income. The gain or loss of foreign…

Q: What is a deferred tax asset and how is the value created?

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: What is the valuation allowance for deffered tax asset

A: Deferred tax asset(DTA) arises due to payment of higher tax in current year due to the variance…

Q: What Accounting periods and accounting methods available to individuals for tax purposes?

A: Internal Revenue Service (IRS) advises that each taxpayer (individual) must figure taxable income on…

Q: How does the disposition effect impact investor tax?

A: Introduction: The disposition effect is coined by economists Hersh Shefrin and Meir Statman in a…

Q: What is the difference between a progressive tax, a proportional tax, and a regressive tax?

A: Tax is an important concept in the area of finance. The United states has three types of taxes…

Q: What are the deductibility of real property taxes

A: Property taxes and real property taxes are interchangeable terms. They are levied on the majority of…

Q: What are the distinctions between deferred tax assets and deferred tax liabilities?

A:

Q: What are the benefits or advantages of filing a consolidated income tax return?

A: The consolidated tax return represents the single tax return of the affiliated group of companies.…

Q: How much was the profit before finance cost and income tax?

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: Horace is an employee of Ace Electric Company. Ace provides all employees with group term life…

A: Many employers provide fringe benefits to their employees. One such benefit that is commonly…

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.