Whichis not charged against the income of an estate 1 Ordinary repairs to income-producing property 2 Expenses incurred to protect income flow 3 Loss on the sale of an estate asset 4 All of the above are charged against the incom

Whichis not charged against the income of an estate 1 Ordinary repairs to income-producing property 2 Expenses incurred to protect income flow 3 Loss on the sale of an estate asset 4 All of the above are charged against the incom

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section16.2: Take Advantage Of Beneficial Tax

Problem 1CC

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Concept explainers

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.

Question

Whichis not charged against the income of an estate

1	Ordinary repairs to income-producing property
2	Expenses incurred to protect income flow
3	Loss on the sale of an estate asset
4	All of the above are charged against the income

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