Which of the Following Is True About Capital Assets

question 1

Multiple Choice

Which of the following is true about capital assets?

• A)Real property used in a trade or business is a capital asset.
• B)Capital losses may be carried back 3 years to offset capital gains in those years.
• C)For 2011,net long-term capital losses are granted preferential tax rates.
• D)Individual taxpayers may deduct net capital gains of up to $3,000 per year.
• E)Shares of stock held for investment are capital assets.

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Definitions:

Affirming

The act of validating, confirming, or asserting something as true or valid, especially within the context of logical arguments.

Modus Ponens

A form of argument in logic that if a conditional statement ("if P then Q") is accepted, and the antecedent (P) holds, then the consequent (Q) can be concluded.

Symbolic Form

expressing concepts or ideas through symbols or a symbolic language, often used in logic and mathematics to convey complex information efficiently.

Truth Table

A mathematical table used in logic to determine the truth value of a logical expression based on the truth values of its inputs.