Having a Grandmother Who Sits on the Board of Trustees

question 44

True/False

Having a grandmother who sits on the board of trustees for your college and helps you gain entrance is an example of social capital.

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Definitions:

Section 1250 Property

Real property, typically buildings or structures, subject to a depreciation recapture tax if sold at a gain.

25% Bracket

A reference to a tax bracket where individuals or entities are taxed at a rate of 25% on their income within a certain range.

Trade or Business

Trade or Business is an activity carried on for the purpose of earning profit by providing goods or services, and is characterized by regularity and continuity.

Section 1231 Asset

A tax term referring to depreciable property or real estate used in a trade or business that, if sold, can result in favorable capital gains treatment.