How Long Must a Capital Asset Be Held to Qualify

question 1330

Multiple Choice

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

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

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Definitions:

CAFTA

The Central American Free Trade Agreement, a trade agreement between the United States and Central American countries to reduce trade barriers.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries from foreign competition.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations.

Environmental Standards

Regulatory benchmarks established to limit pollution and protect ecosystems by controlling the emissions of harmful substances and ensuring sustainable practices.