Ch. 10 : Categorizing Assets for Income Tax Purposes Flashcards
1
Q
Capital Assets are defined as anything other than ACID. What is ACID?
A
A - accounts and notes receivable
C - copyrights, artistic, musical literary
I - Inventory or stock
D - depreciable property or real property in business.
2
Q
Capital Assets are deductible against capital gains up to the maximum per year. What is the maximum?
A
$3,000, capital losses in excess may be carried over.
