Chapter 5 Flashcards
1
Q
The amount assigned to an asset from which gain or loss is determined for income tax purposes.
A
Basis
2
Q
Amounts paid by mutual funds. Represent gain. Taxed on year constructively received.
A
Capital Gain Distribution
3
Q
Pool of money from many investors. Registered with SEC. invests in stocks, bonds, money market instruments.
A
Mutual Fund
4
Q
Stock dividend distributions that are not taxable.
A
Nontaxable Distributions
5
Q
Most common distribution from corporation. Earnings and profits of the company.
A
Ordinary Dividends
