TAX 4001- Midterm Exam Guide - Comprehensive Notes for the exam ( 34 pages long!)
Document Summary
Rest of chapter 8 (*continued from previous class) A business can be run in the form of. Individuals are able to take preferred rates on the gains from capital assets. An individual can have a capital asset as an investment. Not just investments - couch , tv, car. Collectibles no > than 28% not > than 25% Joe is in 35% tax bracket (marginal rate) Unrecapture 1250 taxed at a max of 25% 28% gain is collectible gain taxed at 28% Take ,000 capital loss ( bc you are allowed to take up to 3,000 capital loss) Net short term = net loss 2,000 short term. 5,000 loss comes off against the collectible gain. Collectible and and unrecaptured taxed at different rate. Depreciable property or real property used in business. Property not held for over a year. Ar - ab = real g recog g.
