Capital Gain and Losses

What is the maximum tax rate for long-term capital gains in the United States?

10%

15%

20%

25%

True or False: Capital losses can be used to offset capital gains for tax purposes.

Which of the following is an example of a short-term capital gain?

Selling stocks held for less than one year

Selling real estate held for two years

Selling a vintage car held for three years

Selling artwork held for six months

What is the holding period required for an asset to be considered a long-term capital gain?

Less than six months

One year or more

Two years or more

Five years or more

Which of the following is an example of a capital loss?

Selling stocks at a loss

Selling real estate at a profit

Selling a collectible item at a profit

Selling bonds at a loss

What is the tax rate for short-term capital gains in the United States?

10%

15%

20%

25%

True or False: Capital gains tax rates are progressive, meaning higher-income individuals pay a higher rate.

What is the maximum tax rate for collectibles and certain small business stock held for more than one year in the United States?

10%

15%

20%

25%

True or False: Capital gains tax is only applicable to individuals and not corporations.

Which of the following is an example of a long-term capital loss?

Selling stocks held for two years at a loss

Selling real estate held for six months at a loss

Selling a vintage car held for one year at a loss

Selling artwork held for three years at a loss

What is the holding period required for an asset to be considered a short-term capital gain?

Less than six months

One year or more

Two years or more

Five years or more

True or False: Capital gains from the sale of a primary residence are always tax-free.

Which of the following is an example of a capital gain distribution?

Receiving dividends from stocks

Receiving interest income from bonds

Receiving profits from a partnership

Receiving rental income from a property

Receiving a distribution from a mutual fund

What is the tax rate for collectibles and certain small business stock held for one year or less in the United States?

10%

15%

20%

25%

True or False: Capital gains tax rates are the same for all types of assets.

Which of the following is an example of a wash sale?

Selling a stock at a loss and buying it back within 30 days

Selling a rental property at a profit

Selling a collectible item at a profit

Selling bonds at a loss and buying similar bonds immediately after

What is the tax rate for net capital gains from the sale of collectibles held for more than one year in the United States?

10%

15%

20%

25%

True or False: Capital gains tax rates are adjusted annually based on inflation.

Capital Gain and Losses

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