An investor who is in a 33% tax bracket for normal (ordinary) income buys a stock for $5,000 and sells it for $9,000. How much will her tax obligation be if she holds the stock for:(a) 6 months?(b) 14 months?

Q: Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residen...

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Q: erm, Chaprers Baved TB MC Qu. 7-139 Berry Co. purchases a patent on January 1, 2021... Berry Co. pur...

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Q: PART I- FMT Company had the following balance sheets and income statements accounts over the last th...

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Q: What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?

A: Since there is no revenue and expense of the acquire upto the date of acquisition.

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Q: Which is true regarding the Investment in Subsidiary Stock account?

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A:

Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...

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A: The question is based on the concept of Cost Accounting.

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A:

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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.