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.
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.
2.
Long-term capital gains are taxed at higher rates than short-term capital gains.
Choose wisely. There is only one correct answer.
False. Long-term gains are taxed at lower rates than short-term gains. This is meant to encourage investors to invest for longer periods.
3.
The amount of time you hold onto an asset is known as the ________.
Choose wisely. There is only one correct answer.
Holding period. The holding period is the amount of time you hold onto your asset.
4.
Short-term assets are assets held _______ month(s) or fewer.
Choose wisely. There is only one correct answer.
Twelve. This has implications for taxation.
5.
Sales of art, antiques, gems, and stamps are exempt from capital gains taxes.
Choose wisely. There is only one correct answer.
False. Collectibles, including art, antiques, gems, and stamps, are subject to capital gains taxes.