Basics Beginner: Capital Gains

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1.
Having an unrealized gain means your asset decreases in value while you are still holding it.
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False. A gain is unrealized if an asset increases, not decreases, in value while you are still holding onto it.
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.
Short-term assets are assets held _______ month(s) or fewer.
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Twelve. This has implications for taxation.
4.
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.
5.
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.