D net capital gain is de fi ned as 90 the excess of

d.
Net capital gain is de fi ned as: 90.
the excess of the taxpayer’s net long-term capital gains over its net short-term capital losses. a.
the excess of the taxpayer’s net short-term capital gains over its net long-term capital losses. b.
the excess of the taxpayer’s net long-term capital gains over its net long-term capital losses. c.
none of the above. d.
Long-term capital gain can be generated from:
Which of the following is not a capital asset as de fi ned by the Code? 92.
Inventory held primarily for resale in the ordinary course of business.
93.
The tax laws require that net Section 1231 gain be recaptured as ____________ to the extent that the
taxpayer has nonrecaptured Section 1231 losses from the previous ____________ tax years.
Ordinary income, fi ve.
e.
When an individual sells collectibles held long-term, any gain is taxed at a maximum tax rate of: 94.
5 percent. a.
10 percent. b.
15 percent. c.
20 percent. d.
28 percent. e.
During 2010, Randy Rooney recognizes a $13,000 short-term capital loss, an $8,000 long-term capital loss and a 95.
$9,000 short-term capital gain. What is the amount and nature of Randy’s capital loss carryover to 2011?
$4,000 short-term, $8,000 long-term.

594 CCH Federal Taxation—Basic Principles
Chapter 12 © 2010 CCH. All Rights Reserved.
Land used in the taxpayer’s business is sold during the years. If the land was purchased nine months ago 96.
for $60,000 and is sold for $95,000, what is the character of the $30,000 recognized gain?
ordinary income.
d.
Tony Tinker, single, sells 3,000 shares of Section 1244 stock for $50,000. Tony purchased the stock years 97.
ago for $175,000. How is the loss treated on Tony’s tax return?
$125,000 ordinary loss.