Answered: Which of the following is not true…

Business

Accounting

Which of the following is not true about capital assets?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 23CE

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Which of the following is not true about capital assets?

a.Individual taxpayers may deduct net capital losses of up to $3,000 per year.

b.Real property used in a trade or business is not a capital asset.

c.Net long-term capital gains are granted preferential tax treatment.

d.Shares of stock held for investment are capital assets.

e.Capital losses may be carried back for 3 years to offset capital gains in those years.

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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