Which of the Following Is Not True of Capital Gains

question 11

Multiple Choice

Which of the following is not true of capital gains and losses?

• A)Capital gains and losses are always netted before the treatment of the excess is determined.
• B)Net short-term capital gains in excess of net long-term capital losses are subject to tax at ordinary rates.
• C)Net capital losses in excess of net capital gains are fully deductible within an annual limitation.
• D)A capital gain deduction is allowed for a portion of net long-term capital gains in excess of net short-term capital losses.

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Definitions:

Mounting Distance

The specific space required between two objects or components to properly install or fit them.

Overall Length

The total length of an object measured from one end to the other.

Crown Height

The vertical distance between the top of a curved surface (like a road or a cam) and the chord (straight line) connecting the endpoints of the curve.

Whole Depth

In gear terminology, the total depth of a gear tooth space, from the top of the tooth to the bottom of the gullet.