Basics Beginner: Capital Gains

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1.
Short-term assets are assets held _______ month(s) or fewer.
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Twelve. This has implications for taxation.
2.
Almost _______ of all realized capital gains are received from corporate stock sales.
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50 percent. Almost half of all capital gains taxes are taxes on corporate stocks.
3.
The amount you get for selling an asset is known as the basis.
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False. The amount you get for selling an asset is called the amount realized.
4.
The capital gains tax is a tax on _______.
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The increase in value of an investment. This increase is taxed in the year that you realize the gains.
5.
Unrealized gains or losses on your investments must be reported on your tax returns.
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False. Only realized gains or losses must be reported on your tax returns.