Which of the Following Is True of the Taxation of Capital

question 46

Multiple Choice

Which of the following is true of the taxation of capital gains in the United States?

• A)Short-term capital gains are not taxed.
• B)The tax cannot be deferred.
• C)It is taxed on accrual.
• D)It is taxed on realization.

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Definitions:

Logic

A system of reasoning or a framework for rational thought to assess the validity of statements or arguments.

Precise Wording

The use of clear and exact language to communicate specific details effectively, minimizing misunderstandings.

Future-Oriented

Focused on or planning for the upcoming trends, innovations, or occurrences rather than the current or past situations.

Sales Presentation

A promotional talk or pitch designed to introduce a product or service to potential buyers, aiming to persuade them to make a purchase.