Which of the following estates will need to file a federal estate tax return assuming that the decedent died in 2026: An unmarried decedent owned property worth $3,400,000? Assuming the mortgage is deductible, an unmarried decedent owned real estate worth $12,000,000 subject to $4,000,000 mortgage? An unmarried decedent owned property worth $11,000,000 and had made taxable gifts in 2004 of $1,000,000? A married decedent owned a house worth $12,000,000 jointly with her spouse? (Assume ½ of value will be included in the decedent’s taxable estate.)

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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.