If an individual taxpayer sells an asset he has owned for several years at a gain, he

Fantastic news! We've Found the answer you've been seeking!

Question:

If an individual taxpayer sells an asset he has owned for several years at a gain, he generally would prefer that the gain be taxed as a capital gain, rather than an ordinary gain. Why is this so?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

See More Books

Posted Date: Feb 21, 2024 02:18 PM

See More Questions

Which form of business organization is limited by the Internal Revenue Code (IC) concerning the number and type of shareholders? A partnership An S corporation A C corporation A sole proprietorship...
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine whether the gain would be taxed as short-term capital gain, long-term capital gain taxed at 20%, long-term capital gain...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Oliver owns Wifit, an unincorporated sports store. Wifit earned $100,000 before Oliver drew out a salary of $60,000. What is Oliver's deduction for self-employment taxes? Group of answer choices A....
Write a Project Implementation Plan for the organization using the Project Charter. The Project Implementation Plan must include the following sections: Project Communications Plan, Risk analysis,...
A recent annual report for FedEx contained the following data: Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. 2. Explain the meaning...
In the binomial model obtain the values of $u, d$, and $p$ given the volatility $\sigma$ and the risk-free interest rate $r$ for the following cases: (a) $p=\frac{1}{2}$. (b)...
Arthur Andersen LLP was the auditor for Enron, WorldCom, Waste Management and other companies that committed fraud. Andersen was forced to shut its doors forever after a U.S. Department of Justice...
Given the following coding: read (x); read (y); while x #y loop if x > y then x=x-y; else y=y-x; end if; end loop; gcd := x; a) Draw the flow graph. b) Calculate the cyclomatic complexity using THREE...
Sports Performance Increased (BPI) Ltd. is a relatively new company that created various sports apps designed for athletes. These apps can be downloaded onto a mobile device and assist users in...
You took a long position on a stock for $200 and a put option on it for $20 with a strike price of $190. You took a short position on a call option on it for $30.00 with a strike price of $200. a....
Antonio must pay a lump sum of $6000 in 5 years. What amount deposited today at 6.2% compounded annually will amount to $6000 in 5 years? Is this simple interest, compound interest or annuity?is it...
Remember that the value of a firm with cost of equity R and dividend growth g is given by D(1)/(R-g), where D(1) is the dividend one year from now. Consider a firm that had a net income NI(0)=100M...
date Mkt_RF Firm1_RF 198001 5.51 7.0928 198002 -1.22 -1.3106 198003 -12.9 -20.5097 198004 3.97 4.8674 198005 5.26 7.2581 198006 3.06 4.7245 198007 6.49 12.7863 198008 1.8 7.8419 198009 2.19 4.5016...
Harpo sells 100 shares of stock in General Electric via a stockbroker. The last quote was $30.01 last trade, $29.98 bid and $30,00 ask. What price would she receive?
The following are two payment options. The applicable discount rate is 8.90% Option 1 Payment of $50,000 immediately, followed by $20,000 in one year, $15,000 in two years, and $10,000 in years 3 to...
Finance Lease (Calculator set on BEG). On January 1 st , 2020 Asphalt Paving Co leased a road-paving machine from Construction Leasing Co. for 5 years. Payments under the lease were $170,951.42,...
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
Greg died on July 1, 2012, and left Lea, his wife, a $50,000 life insurance policy which she elects to receive at $5,000 per year plus interest for 10 years. In the current year, Lea receives $6,200....
Marty is a sales consultant. Marty incurs the following expenses related to entertainment of his clients in 2012: Dues to a country club......................................................$4,500...
John Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John's earnings and withholdings as the manager of a local...
Consider a two-level system, with basis $|1angle,|2angle$, and in this basis, a Hamiltonian with elements $\left(\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight)$. Use the first form of the...
Use the practical variational method for the same harmonic oscillator ground state energy, with trial wave function $\psi_{a}(x)=e^{-a y^{2}}$.
Use the Ritz variational method for the harmonic oscillator, with trial wave functions $\psi_{1}(x)=$ $e^{-y^{2} / 2}, \psi_{2}(x)=e^{-y^{2}}, \psi_{3}(x)=e^{-2 y^{2}}$, where \(y=x \sqrt{m...

If an individual taxpayer sells an asset he has owned for several years at a gain, he

Question:

Expert Answer:

Individual taxpayers generally prefer that the gain from selling an asset be taxed as a capital gain ... View the full answer

Income Tax Fundamentals 2013

Students also viewed these law questions