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Which memory system has an unlimited capacity and can keep information for hours or decades?
Section 1231 Gain
A gain from the sale or exchange of property used in a business or trade that is treated as capital gain for tax purposes, providing tax advantages.
Section 1245 Gain
A tax term referring to the gain from the sale or disposal of certain types of depreciable property, where the gain is recaptured as ordinary income.
Ordinary Income
Refers to the type of income earned by an individual that is subject to standard tax rates, including wages, salaries, commissions, and income from interest or dividends.
Long-Term Capital Losses
Losses incurred from selling assets that have been held for over a year, which can be applied to counterbalance capital gains when calculating taxes.
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