The taxpayers net capital gain is zero if the taxpayer has a net long-term capital loss. True or false

Q: Unrealized los

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: property is inherited by a taxpayer, a.To the recipient, the basis for the property is the same as…

A: Capital gain on sale of property inherited is governed by step up basis rule.

Q: TRUE OR FALSE? By forfeiture, the proceeds of the property sold are applied to satisfy the tax…

A: The tax liability is the liability which is upon the shoulders of the person who is known as the…

Q: A taxpayer has the following income (losses) for the current year: Active Income Portfolio Income…

A: Passive income would be defined as earnings received from a rental property, limited liability…

Q: What are arguments for and against preferential treatment of capital gains?

A: Capital gain defined as the increase in the value of the capital asset and it is realized when the…

Q: what are the two tax rates whih are used to calculate AMT, ignoring the special treatment of…

A: A dividend seems to be the distribution of a part of a company's earnings to a selected group of…

Q: Is compensation income subject to final tax?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a. Deductions b. Exceptions c. Exclusions d. Any of the above

A: Computation of  Total Taxable Income  1 Income under head Salary XXXX 2 Income under head…

Q: The faster an asset can be depreciated, according to IRS rules, the greater a company's after-tax…

A: Depreciation is a process in which, when a business buys or develops an asset, the tax treatment for…

Q: Which of the following is not an income for income tax purposes?

A: Assuming the question related to tax in Phillipines ---…

Q: Your tax basis in any asset or property you own – (a) can never be less than zero.…

A: A) Tax basis is the amount investment in Fixed assets. on this value the depreciation , gain or loss…

Q: .If a taxpayer has both a NSTCG and a NLTCG or both a NSTCL and a NLTCL, the results are netted in…

A: 1.  If a taxpayer has both a NSTCG and a NLTCG or both a NSTCL and a NLTCL the results are netted in…

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

A: Lets understand the basics. When there is temporary taxable difference arise book profit and tax…

Q: The tax law requires that capital gains and losses be separated from other types of gains and…

A: Short-term capital lose are allowed to be setoff against both long-term gain and short-term…

Q: What are long-term capital gains? Are they taxed like other income? Explain.

A: A long-term capital gain or loss is the gain or misfortune coming about because of the selling of…

Q: According to the article by Tony Dimitriadis (see Supplementary Study Materials Folder), whether an…

A: Capital gains refer to the sum value of money gained overselling any asset more than its value in…

Q: If you earn enough extra income to be placed in a higher tax bracket and have a higher marginal tax…

A: Marginal tax rate is the tax rate for next dollar of taxable income, which is above a threshold…

Q: Is estate tax a type of debt? What happens if a person doesn't pay estate tax?

A: The estate tax is a tax imposed after a person's death on the transfer of property and other assets.…

Q: Which of the following statements is correct? When depreciable property is gifted to another…

A: Depreciation recapture: Depreciation recapture is a method used by ISR (Internal Revenue Service)…

Q: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

A: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

Q: Why might it be more advantageous for a taxpayer to demonstrate that they ... Why might it be more…

A: The correct answer for the above motioned question is given in the following steps.

Q: For individual taxpayers, capital losses can be: deducted for AGI to the extent of capital gains…

A: Adjusted gross income (AGI) is a measure of income calculated from your gross income and used to…

Q: Taxpayer received a tax-free benefit, perhaps a gift from a company that wanted to increase its…

A: Gifts are exempt from tax up to a certain limit. Beyond this limit the taxpayer has to pay tax on…

Q: A) Interest paid or accrued to purchase or carry tax-exempt investments is not deductible. B)…

A: Investment Income Under normal circumstances investment income can't be used for the tax deduction…

Q: true or false    capital gains on a principal residence are never taxable.

A: When a person sell his main inhabitant that is principal residence and there is gain on sale then it…

Q: Which is not a feature of final tax? A. Covers certain passive income B. Covers all capital gains C.…

A: Solution Capital gain can be defined as any profit that is received through the sale of capital…

Q: The QBI deduction will reduce both the income tax and self-employment taxes owed by a self-employed…

A: Answer:   False.

Q: An individual taxpayers net long-term capital losses retain their long-term status when carried over…

A: The concept given here is on capital gains as per IRS Taxation

Q: Which of the following is accurate regarding a real estate foreclosure transaction? A  A…

A: The question is based on the concept and principle of income tax for real estate transactions.…

Q: All the profits of a sole proprietorship are taxed as current income of the owner even if they are…

A: Sole Proprietorship : in sole proprietorship the the business is run by only one person. The owner…

Q: Taxpayer sulffers a casualty loss The property can be repaired and placed back in service Assuming…

A: Casualty loss is deductible. Casualty loss cab be claim on federal income tax, for claim loss you…

Q: A taxpayer has some income leftover between their California AGI and their deductions - Will this…

A: Capital loss is opposite of gain, it occurs when sale value is less than purchase value of capital…

Q: Allowable Business Investment Losses (ABIL) can be deductible from any source of income to the…

A: Allowable business investment losses is the loss which has been incurred by the taxpayer out from…

Q: Which of the following would constitute tax evasion?   a. Henry salary sacrifices future income…

A: Tax evasion means when the individual does not show their actual income or does not show any income…

Q: TRUE OR FALSE? 1. An excess tax depreciation will result to a deferred tax liability. 2. If the…

A: 1.An excess tax depreciation will result to a deferred tax liability-The given statement is False..…

Q: The key to reducing one's tax liability is to a. reduce taxable income b. reduce gross income

A: Tax liability of an individual can be reduced by lowering its taxable income. After calculating for…

Q: Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20%…

A: Short term capital losses first offset against short term capital gains and Long term capital losses…

Q: The tax laws treat capital gains and losses differently from ordinary gains and losses. True or…

A: Ordinary income and capital gains income are the two broad categories of income in the tax code.…

Q: The "income tax benefit" account reduces the current tax expense for the year and is a deduction…

A: Income tax: It implies to a financial levy that is imposed or charged on the taxable income of the…

Q: current year capital loss from investment property not offset against capital gains and ordinary…

A:

Q: An unused tax loss will arise when:   a. Expenses deductible for tax purposes are less than the…

A: Taxable income is the one upon which a tax percentage is charged as per the tax bracket to be paid…

Q: A taxpayer may defer a taxable 2020 capital gain by investing the gain amount into which of the…

A: The question is related to capital gain. A taxpayer may defer a taxable capital gain by investing…

Q: An allowable capital loss realized in a year can first be deducted in the current year against…

A: Answer with explanation are as follows.

Q: True or False

A: Long-term capital gains (LTCG): The gain an individual or an entity gets by selling the investment…

Q: Helena has the following long-term capital gains and losses for 2020: $62,000 28% gain, $49,600 28%…

A: Capital gain or loss is the gain or loss incurred or generated on sale of any capital asset. Capital…

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.