James Is a Resident of the U

question 25

Multiple Choice

James is a resident of the U.S. and has accrued capital gains on an asset. If James dies prior to the realization of capital gains, ____.

• A)his heirs will have to pay the tax on gains
• B)his heirs can sell the asset and the gains will be tax-free
• C)his heirs will not be able to sell the asset
• D)his heirs will have to pay a death tax along with the capital gains tax

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Definitions:

Secondary Source

Information that has been interpreted, analyzed, or summarized from primary sources, often used in research.

Direct Quote

A verbatim excerpt from a text or speech used to support or illustrate a point.

Causation

The relationship between cause and effect, where one event is understood to be the direct result of another.

Correlations

The measure of a relationship between two variables or sets of data.