Long term capital gains & short terms capital gains treated differently for income tax. Concept Introduction: Capital gains incomes that arise on the sale of capital assets. There are two types of capital gain on the sale of capital assets. long term capital gain- Capital gain on sale of capital assets which are held for more than 12 month Short term capital gain- Capital gain on sale of capital assets which are held for less than 12 month

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Answer 1

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Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

Chapter 4.2, Problem 2CC

Summary Introduction

To Explain: Long term capital gains & short terms capital gains treated differently for income tax.

Concept Introduction: Capital gains incomes that arise on the sale of capital assets. There are two types of capital gain on the sale of capital assets.

long term capital gain- Capital gain on sale of capital assets which are held for more than 12 month

Short term capital gain- Capital gain on sale of capital assets which are held for less than 12 month

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Answer 2

Question

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

Chapter 4.2, Problem 2CC

Summary Introduction

To Explain: Long term capital gains & short terms capital gains treated differently for income tax.

Concept Introduction: Capital gains incomes that arise on the sale of capital assets. There are two types of capital gain on the sale of capital assets.

long term capital gain- Capital gain on sale of capital assets which are held for more than 12 month

Short term capital gain- Capital gain on sale of capital assets which are held for less than 12 month

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Answer 3

Question

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

Chapter 4.2, Problem 2CC

Summary Introduction

To Explain: Long term capital gains & short terms capital gains treated differently for income tax.

Concept Introduction: Capital gains incomes that arise on the sale of capital assets. There are two types of capital gain on the sale of capital assets.

long term capital gain- Capital gain on sale of capital assets which are held for more than 12 month

Short term capital gain- Capital gain on sale of capital assets which are held for less than 12 month

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

Chapter 4.2, Problem 2CC

Summary Introduction