Practice: Capital Gains & Losses Quiz Quiz | Tax Compliance & Planning (TCP)

Question 1

What is a capital gain?

Answer

Income earned from wages

Answer

Profit from selling a capital asset

Answer

Interest received from a bank account

Answer

A tax deduction for investments

Question 2

Which of the following is generally considered a capital asset?

Answer

Inventory held for sale in a business

Answer

Office supplies

Answer

Shares of stock held as an investment

Answer

Raw materials used in manufacturing

Question 3

What is the primary purpose of determining a property's cost basis?

Answer

To calculate the gain or loss when the property is sold

Answer

To determine annual property taxes

Answer

To calculate mortgage payments

Answer

To estimate rental income

Practice Quiz