What is the taxpayer's long-term capital gain liability, given the following security sales during the tax year?

Q: 1. A. Sharae pays $5,000 every six months for 5 years, and the annual interest rate is 4%. What is…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: what is omar's self-employment tax liability?

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Q: what are the advantages and disadvantages of the payroll tax deferral?

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Q: Who is normally considered to be the owner of a 403 b tax shelter annuity?

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Q: For investment interest expense in 2022, the deduction by a taxpayer is:

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Q: FUTA TAX MUST BE DEPOSITED WHEN THE CUMULATIVE QUARTERLY TAX LIABILITY EXCEEDS?

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Q: Which of the following represents the total dollar amount of revenue actually received by the…

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Q: for what minimum period must a self-employed taxpayer retain business documents supporting her…

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Q: who are benefits or do not benefit from payroll tax deferral?

A:

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Q: Why would a taxpayer file a tax return if not required to do so?

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

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Q: A taxpayer uses

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Q: What are the tax ramifications if section 179 is used to depreciate the total amount of an asset…

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Q: Matt and Meg Comer are n

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Q: For each item listed below, indicate whether it involves a:                            a. permanent…

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Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes.…

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Q: For an accrual basis taxpayer, which of the following statements is TRUE  regarding prepaid income?…

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Q: What is your firm’s tax expense in its latest financial statements?

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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.