____ Gains Are Taxable and Occur When an Asset Is

question 7

Multiple Choice

____ gains are taxable and occur when an asset is sold for more than its basis (the value of the asset when it was purchased by the original owner or inherited by the heirs of the original owner) .

• A) Realized capital
• B) Income
• C) Portfolio
• D) Nominal
• E) Real

---

Definitions:

Profit a Prendre

A legal right granted to a person to enter another's land and take away some part of the land's produce or mineral deposits.

Restrictive Covenant

A clause in a contract or agreement that imposes limitations or conditions on the actions of one or more parties, typically to protect business interests.

Remainderman

A third party with the right to the remainder of the fee simple after the death of a life tenant.

Life Estate

A property interest where an individual (the life tenant) has the right to use, occupy, and benefit from a property during their lifetime, after which the property typically reverts to a remainderman.