How Long Must a Capital Asset Be Held to Qualify

question 91

Multiple Choice

How long must a capital asset be held to qualify for long-term treatment?

• A)6 months
• B)one year
• C)one year and one day
• D)same trade date one year from purchase

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Definitions:

Unrecorded Deed

A deed that has been executed and delivered but has not been filed with the appropriate county recorder’s office, thus not part of the public record.

Subsequent Purchaser

An individual or entity that acquires ownership of property or goods after they have been initially sold by the original owner.

Notary Public

An authorized official who can attest to the authenticity of signatures on documents, among other duties, to help prevent fraud.

Grantor's Signature

The signature of the individual or entity that grants or conveys rights, typically found in legal documents like deeds and trusts, signifying agreement and compliance.