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1.
Short-term assets are assets held _______ month(s) or fewer.
Twelve. This has implications for taxation.
2.
You can deduct up to _______ in capital losses on your income tax forms each year.
$3,000. If your losses exceed your gains, you can deduct up to $3,000 in capital losses.
3.
The difference between the original price of an asset and the price you sell it for is known as its _______.
Realized capital gain or loss. The realized gain or loss is the difference between the price at the time you sell it and the original price you paid for it.
4.
Art may be subject to capital gains taxes when it is sold.
True. Some collectibles, such as art, also qualify for capital gains taxes.
5.
You have a capital loss on an investment if your amount realized is less than your basis.
True. The amount realized is what you earn from a sale, and the basis is what you paid for it.