How is Gross Income Taxed: Capital Assets

Question 1

Capital Assets

Answer 1

Capital Gain, Capital Gain/Ordinary Loss, Capital Gain/Capital Loss, Capital Gain/Nondeductible Loss, Ordinary Income/Ordinary Loss, Ordinary Income/Nondeductible Loss

Question 2

Capital Gain

Answer 2

Dividends from Corporate Stock

Question 3

Capital/Ordinary Loss

Answer 3

Real Estate usted in a business, rental properties, taxpayer’s owner-occupiped business premises, leased land

Copyrights on music created by taxpayer

Question 4

Capital Gain/Capital Loss

Answer 4

Stock in corporation, bonds, mutual fund shares.

Any other asset held for investment.

Question 5

Capital Gain/Nondeductible Loss (Garage Sale Losses)

Answer 5

Assets held for taxpayer’s person use assets

Question 6

Ordinary Income/Ordinary Loss

Answer 6

Inventory held by taxpayer, Other assets held for sale to customers, copyright on property other than music created by taxpayer, most equipment and vehicles used in a business.

Question 7

Ordinary Income/Nondeductible Loss

Answer 7

An individual’s personal services.