Chapter 14 Quiz

Chapter 14 Quiz - not a capital asset. ____ 4. Real...

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ch 14 quiz True/False Indicate whether the statement is true or false. ____ 1. The tax law requires that capital gains and losses be separated from other types of gains and losses because an alternative tax calculation may be used when taxable income includes net long-term capital gain. ____ 2. A business taxpayer sells depreciable business property with an adjusted basis of $40,000 for $32,000. The taxpayer held the property for more than a year. The taxpayer has an $8,000 long-term capital loss. ____ 3. Since the Code defines what a capital asset is not, often the courts have to help determine what is and what is
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Unformatted text preview: not a capital asset. ____ 4. Real property subdivided for resale into lots, even if no substantial physical improvements have been made to the property, always causes the gain from sale of the lots to be treated as ordinary income. ____ 5. Short-term capital losses are netted against long-term capital gains and long-term capital losses are netted against short-term capital gains....
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