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.
Unrealized gains or losses on your investments must be reported on your tax returns.
Choose wisely. There is only one correct answer.
False. Only realized gains or losses must be reported on your tax returns.
2.
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.
3.
Almost _______ of all realized capital gains are received from corporate stock sales.
Choose wisely. There is only one correct answer.
50 percent. Almost half of all capital gains taxes are taxes on corporate stocks.
4.
The capital gains tax is a tax on _______.
Choose wisely. There is only one correct answer.
The increase in value of an investment. This increase is taxed in the year that you realize the gains.
5.
Long-term capital gains are taxed at a higher rate than short-term capital gains.
Choose wisely. There is only one correct answer.
False. Long-term gains are taxed at a lower rate than short-term gains.