Basics Beginner: Capital Gains

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Art may be subject to capital gains taxes when it is sold.
Choose wisely. There is only one correct answer.
True. Some collectibles, such as art, also qualify for capital gains taxes.
2.
Having an unrealized gain means your asset decreases in value while you are still holding it.
Choose wisely. There is only one correct answer.
False. A gain is unrealized if an asset increases, not decreases, in value while you are still holding onto it.
3.
A capital gain is the amount of money you make when you buy an investment.
Choose wisely. There is only one correct answer.
False. A capital gain is the amount of money you make when you sell an investment.
4.
You can deduct up to _______ in capital losses on your income tax forms each year.
Choose wisely. There is only one correct answer.
$3,000. If your losses exceed your gains, you can deduct up to $3,000 in capital losses.
5.
The amount you get for selling an asset is known as the basis.
Choose wisely. There is only one correct answer.
False. The amount you get for selling an asset is called the amount realized.