Since the Gain Received from the Sale of Stock Is

question 80

True/False

Since the gain received from the sale of stock is always taxed as ordinary income, you might want to time your sale to shift your profit from one year to another.

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Definitions:

Contract

A legal agreement between two or more parties that creates obligations which are enforceable or recognized by law.

Mistake of Fact

A misunderstanding by one or more parties to a contract about a material fact that is essential to the agreement, which can sometimes render the contract voidable.

Rescission

The act of revoking, canceling, or annulling a contract, returning all parties to their statuses prior to the contract's formation.

Mistake of Law

An error made by a person in understanding the law as it pertains to their actions, which generally is not considered a defense in criminal law.