Which of the Following Is Not True About Capital Assets

question 78

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)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.

---

Definitions:

Clause

A specific provision or section within a contract or legal document that stipulates specific terms, conditions, or obligations.

Public Policy

Principles and standards considered by governments in managing their affairs, aiming to ensure the community's welfare and interests.

Necessary

Something that is essential or required to achieve a certain outcome or fulfill a function.

Liable

Being legally responsible or obligated, typically in the context of a debt or a legal judgment.