The Net Capital Gain Included in an Individual Taxpayer's AMT

question 13

True/False

The net capital gain included in an individual taxpayer's AMT base is eligible for the beneficial alternative tax rate on net capital gain.This favorable alternative rate applies both in calculating the regular income tax and the AMT.

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Definitions:

Trading Volume

The total number of securities traded during a given period of time.

Passive Management

Buying a diversified portfolio, often a broad-based market index, without attempting to identify mispriced securities.

Index Fund

A mutual fund holding shares in proportion to their representation in a market index such as the S&P 500.

Investment Club

A group of individuals who pool their money to make investments, often operating under a democratic structure to make decisions.