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Income Tax Planning
Chapter 11: The Taxation of Capital Assets/LONG-TERM CAPITAL GAIN: EXAMPLE
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 11: The Taxation of Capital Assets

LONG-TERM CAPITAL GAIN: EXAMPLE

01.Core Concepts

Gill purchased 100 shares of Reef Nove lties, Inc. stock on March 17 for $10,000. On March 18 of the following year, he sold the stock for $12,000. Gill’s $2,000 gain on the stock ($12,000 amount realized less $10,000 adjusted basis) will be treated as a long-term capital gain, since Gill held the stock for more than one year.