Which of the Following Is Not True About Capital Assets

question 76

Multiple Choice

Which of the following is not true about capital assets?

• A)Real property used in a trade or business is not a capital asset.
• B)Capital losses may be carried back for 3 years to offset capital gains in those years.
• C)For 2014, net long-term capital gains are granted preferential tax treatment.
• D)Individual taxpayers may deduct net capital losses of up to $3,000 per year.
• E)Shares of stock held for investment are capital assets.

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Definitions:

Market Price

The market value at which one can currently engage in buying or selling a service or asset.

Required Return

The minimum rate of return an investor expects to achieve by investing in a particular asset, taking into account the risk associated with the investment.

Real Return

The return on an investment after adjusting for inflation, showing the actual purchasing power gained or lost.