Which of the Following Is Not True About Capital Assets

question 92

Multiple Choice

Which of the following is not true about capital assets?

• A)Real property used in a trade or business is not a capital asset.
• B)Capital losses may be carried back for 3 years to offset capital gains in those years.
• C)For 2013,net long-term capital gains are granted preferential tax treatment.
• D)Individual taxpayers may deduct net capital losses of up to $3,000 per year.
• E)Shares of stock held for investment are capital assets.

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Definitions:

Stereotyped Perceptions

Oversimplified and fixed ideas or concepts of a particular group of people or things.

Social Stigma

The disapproval or discrimination against a person or group based on perceptible social characteristics that serve to distinguish them from other members of a society.

Self-Perception Theory

A theory suggesting that individuals develop attitudes and opinions by observing their own behavior and concluding what attitudes must have caused them.

Cognitive Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, causing discomfort that leads to an attempt to change beliefs or behaviors to reduce the dissonance.